South Africa Research 06 August 2021 Economics South Africa Morning Sheet Peter Worthington Miyelani Maluleke Sello Sekele New Minister of Finance for South Africa, as President Ramaphosa delivers a long- Andiswa Mdingi anticipated cabinet reshuffle Last night President Ramaphosa unveiled his long-anticipated cabinet reshuffle. The most FI and FX Strategy important news for the financial markets, in our view, was that South Africa’s reluctant Minister of Mike Keenan Finance, Tito Mboweni, has persuaded Ramaphosa to release him. President Ramaphosa Nikolaus Geromont announced that he would be replaced with Enoch Godongwana, currently the head of the ANC’s Economic Transformation Committee, essentially the economic policy arm of the ANC. Godongwana also serves as the chair of the Development Bank of Southern Africa. He has been the
[email protected] general secretary of the National Union of Mineworkers and a finance MEC in the Eastern Cape. Godongwana is known as a policy pragmatist. News24 reports that Godongwana told an ANC summit in January that the government spending is too high, against a backdrop of a shrinking www.absa.co.za Absa, South Africa number of personal income tax payers. Markets could be concerned, however, about Godongwana’s ability to withstand further pressures from within the party to spend the rest of South Africa’s current fiscal windfall from high commodity prices. While the rest of the economic cluster of ministers was unchanged, a key move was the replacement of the Minister of Communications and Digital Technologies Stella Ndabeni-Abrahams, who could not deliver on getting the important broadband spectrum auction off the ground.