You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Ramaphosa reshuffle: Mboweni exits, Godongwana new finmin

Cabinet shake-up sees several changes, but some stay the same.
Tito Mboweni during the 2020 Budget Speech in Parliament in Cape Town. Image: Siyabulela Duda

Arguably the biggest surprise in President Cyril Ramaphosa’s cabinet reshuffle announcement late on Thursday night was Finance Minister Tito Mboweni being “excused” from the position and replaced by Enoch Godongwana, the head of economic transformation in the ANC National Executive Committee (NEC).

Mboweni was parachuted into the finance ministry top job back in October 2018 following the untimely resignation of Nhlanhla Nene.

While he agreed to take the job, it was understood to be temporary move, with Ramaphosa wanting Mboweni in to restore confidence ahead of the 2019 national elections.

Since then, Mboweni has seemed to be in his element in the position, despite his gung-ho moves around much-needed structural reforms for the SA economy sometimes getting him into trouble with the ANC’s alliance partners. He has also had clashes with Public Enterprises Minister Pravin Gordhan around the bailouts of SAA.

Read: Government to foot the bill for ‘restructure’ of new SAA

While talk about a planned cabinet reshuffle has been swirling for weeks, following the effective suspension of embattled Health Minister Zweli Mkhize and the death of former Minister in the Presidency Jackson Mthembu, there was very little expectation that Mboweni would also exit at such a tumultuous time for Ramaphosa and the country.

Just last week Mboweni and National Treasury director-general Dondo Mogajane revealed details of a new R36.2 billion social relief and business support package, which came in the wake of the recent unrest and destruction to property in KwaZulu-Natal and parts of Gauteng.

Read: Mboweni and Mogajane announce R36.2bn in new economic support following unrest

Mboweni was expected to table the new package in parliament soon, but it was unclear whether this would have been in the form of another “emergency budget” or left for the mid-term budget in October.

During Thursday night’s address, Ramaphosa said he “had accepted a long-standing request” by Mboweni “to be excused from his position as Minister of Finance”.

“Minister Mboweni took up this position following the sudden departure of former Minister Nhlanhla Nene in October 2018. Since then, he has effectively and ably steered National Treasury through extremely difficult economic times, providing stability and instilling confidence,” the president noted.

“I am grateful to Minister Mboweni for responding to the call to serve our nation at its time of need,” added Ramaphosa.

Now, Godongwana, who is no pushover himself, will be leading the finance ministry during what is still uncertain times. Besides the recent riots linked to the arrest of former president Jacob Zuma, the ongoing Covid-19 pandemic remains a risk.

Enoch Godongwana, SA’s newly appointed Finance Minister. Image: Moneyweb

Read: Ramaphosa appoints Enoch Godongwana as finance minister

While Godongwana has the benefit of an expected bonanza in tax revenues (largely on the back of booming commodity prices) to fund the new economic relief package, he also has the unenviable task of effectively taking on unions to keep the public sector wage bill in check.

Meanwhile, Gordhan – a staunch Ramaphosa ally – unsurprisingly remains in his position at the all-important Public Enterprises Ministry. As does Ebrahim Patel at the Department of Trade, Industry and Competition.

Mkhize is officially out and has been replaced by Joe Phaahla as health minister.

News of his resignation came even before Ramaphosa announced the reshuffled cabinet.

Despite Mkhize being embroiled in the Digital Vibes tender scandal within the Health Department, Ramaphosa heaped praise on his work as health minister.

“I am grateful to Minister Mkhize for his service, and particularly for the outstanding leadership he has provided in the face of the worst pandemic in over a century,” said the president.

Ramaphosa confirmed that Mkhize requested “to step down as the Minister of Health in order to bring certainty and stability to this important portfolio”.

Interestingly, he did not appoint acting Health Minister Mmamoloko Kubayi to Mkhize’s post, even though she took on the acting role with aplomb.

Read: Kubayi-Ngubane: We’ve passed third wave peak, but 47 000 vaccines ‘lost’ in unrest

Instead, she has been appointed  Minister of Human Settlements. Besides her acting health minister role since June, Kubayi has been Tourism Minister since Ramaphosa was elected.

In another somewhat surprising move, Ramaphosa is culling the Department of State Security, but he noted that “political responsibility for the State Security Agency” would now fall within the Presidency itself.

Ramaphosa seems to be entrenching his authority with this decision, in the wake of the fallout from the lack of intelligence surrounding the recent attempted insurrection and unrest in KwaZulu-Natal and parts of Gauteng.

“This is to ensure that the country’s domestic and foreign intelligence services more effectively enable the President to exercise his responsibility to safeguard the security and integrity of the nation,” he explained.

He announced Zizi Kodwa’s appointment as Deputy Minister in the Presidency responsible for state security.

Another change was the splitting up of the Department of Human Settlements, Water and Sanitation back into two separate departments.

Senzo Mchunu has been moved from Public Services and Administration to being appointed Minister of Water and Sanitation.

Other new cabinet appointments or moves include:

Ayanda Dlodlo – Public Service and Administration

Stella Ndabeni-Abrahams – Small Business Development

Lindiwe Sisulu – Tourism

Mondli Gungubele – Minister in the Presidency

Khumbudzo Ntshavheni – Communications and Digital Technologies

Thandi Modise – Defence and Military Veterans

New deputy ministers include:

Pinky Kekana – second Deputy Minister in the Presidency

Zoleka Capa – Agriculture, Rural Development and Land Reform

Philly Mapulane – Communications and Digital Technologies:

Thembi Nkadimeng – Cooperative Governance and Traditional Affairs

Dr Sibongiseni Dhlomo – Health

Dr Nobuhle Nkabane – Mineral Resources and Energy

Dr Chana Pilane-Majake – Public Service and Administration

Sdumo Dlamini – Small Business Development

Sindisiwe Chikunga – Transport

Dikeledi Magadzi – Water and Sanitation

Ramaphosa said that outgoing State Security Minister Nosiviwe Mapisa-Nqakula will be deployed to a new position, however, he did not stipulate the post.

Read: New finance minister faces battle to revive SA economy

Please consider contributing as little as R20 in appreciation of our quality independent financial journalism.

AUTHOR PROFILE

COMMENTS   56

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

And the destruction of SA will continue with new vigor !!!

Good news all around.

I wish Zuma-visiting Lindiwe Sisulu all the best in her new demotion to Minister of Razzmatazz.

Genuine congrats to Khumbhudzo Ntshavheni for her promotion to this key ministry.

Good riddance to our useless, president contradicting and insurgency-denying ex deputy minister of defense Mapisa-Nqakula.

Good move on the extrication of operational essential services water and sanitation from political football human settlement.

All thanks and praise to the president for giving us some evidence that he is finally putting his foot down.

Well done, either your sarcasm is on another level and I missed it or your naivety is astounding if you truly think this round of musical chairs will lead to any meaningful improvement.

Same old criminals, nothing will change you know it.

You have all been warned – get your money out of SA fast!

Bye bye Rand – RIP

By Tito Mboweni leaving out of his own accord it is the final nail in the coffin so to speak.

Maybe he just got fed up with the dire situation.

I take my hat off for Tito Mboweni. We need more like him in government.

Indeed. Much sad. He talked about legalising cannabis as an additional tax income stream, but I guess that is too forward thinking. Maybe we get USAID and we don’t want to lose that by fully legalising cannabis, one of the main reasons why cannabis became illegal in Nepal was because of USAID.

With Tito out – SAA will now get what they want from new (corrupt?) minister?

It’s like shuffling the chairs on the SAS Titanic.

With the same ANC driving the ship, and not course correcting, it will continue to sink.

Some chairs were found in the kitchens and the cleaning staff accommodation.

Those same chairs ready to be looted no doubt.

The ANC is as fragile within as a glasshouse built on the edge of a cliff in an area with earthquakes. For example: the President can’t fire the useless Cele because he needs the KZN votes at the conference, he can’t get tough on the Police/Military or there may be a coup, he can’t get rid of SAA and non-performing SOE’s because he needs Pravin Gordhan (who is stuck in his 1950s Communism ideology) and he has many enemies within his own party etc. Thus the whole country suffers because the ANC is such a divided house.

This is a terrible blow…in my opinion. Tito was the one bit of stability amongst that lot and it’s unsettling to know that he is no longer there to protect the taxpayer ( as best he could) and the SARB. The nationalization of the South African Reserve Bsnk has just moved a little closer now…..wouldn’t surprise me if this is the next move. Very dangerous times. Farewell Mr Mboweni….your calm unruffled presence will be missed.

Agree – very worrying
Cyril’s message to the world – f u – ANC first

Never confuse activity with progress

And his old shoes that he wears with a smart suit on budget day – he says they’re comfortable! We sure will miss him.

This Godongwana chap has some very left wing views. I am afraid that the market does not view him as growth orientated and he will be under huge pressure to ease the massive social difficulties created by the ANC and the economic destruction from the looting orgy and covid-19.

Frankly I do not think that he is intelligent enough for the role but then which minister is -Patel, Gordhan etc are Reds living in the 1960s with a country that cannot afford their red objectives-we are simply too stolen from and poor!!

He happens to have a doctorate in economics from London University.

I don’t expect the Rand to react. Not sure what socalled left views you’re referring to but he apparently opposed EWC

Correction. He has a Masters in International Finance from University College of London not a doctorate. As for his economic views, he’s the guy who tried to force pension funds to lend to Eskom and other failing SOE’s through Regulation 28

He is or was ANC head of economics. Not an encouraging track record given the past decade

It is a massive pity about Mboweni – eventually Atlas shrugs

Of course Tito would be the first one out, he is standing directly in the path of looting, mad salary increases and every other shenanigan that these champion looters could ever have dreamed up.

Very difficult to feel any enthusiasm about this reshuffle. So many useless entities still in place: Cele, Mbalula, Mantashe — surely the worst of the worst yet they keep their jobs.

After the absolute debacle of the looting spree how can Cele possibly be kept on? It seems actual performance is not valued in any way in this government.

We can do without Patel and DlaminiZuma – and some others.

Definitely DlaminiZuma….how can CR keep his biggest enemy’s wife near him? And he worries about his phone being tapped! Verstaan nie?

Perhaps Squirrel is following Sun Tzu’s dictum of keeping friends close and enemies closer?

And still the interests of the party comes before that of the country.

That is the state of political development the party is at.

this was in the coming… Tito was getting old…. time was coming.

the big question is who will replace Cyril eventually?

I hope previous minister if health (aka wealth) does not escape justice by resigning.

Well the Fat Cat just came back from his “health trip” in Mother Russia. Ready for deployment, comrade!

Godongwana is also a strong supporter of prescribed assets which means our pensions will be the next target to loot. He resigned a few years ago following a R100 million scandal involving pension funds. Now he has been entrusted with a critical position of finance minister. If you haven’t yet taken your assets offshore, act now before it’s to late and you face a destitute retirement.

He strongly supports the independence of the SARB as well as being the one who insisted on stringent conditions at the Nasrec conference, being written into the ANC majority vote to introduce expropriation without compensation, such as “not at the cost of food security,” etc
He is in fact a moderate in the ANC, and like Mboweni, favours fiscal discipline to get SA out of debt.

No surprise, moving more dead wood around

Mboweni should have been Tourist minister; through his love of Twitter he has already placed Magoebaskloof on the world stage.

Hopefully he’ll now return to entertaining us with his recipes and old shoes on Twitter – what a colourful politician and no-nonsense finance minister. Can’t blame him for being gatvol of having to deal with the whole SAA begging bowl saga.

Our country’s finance is now in the hand of a Eunuch.

Squirrel has no nuts, so they are well matched.

Sdumo Dlamini – Small Business Development.

A hardline trade unionist in this portfolio when growth is the main ingredient missing from SA.Inc

Best person for the job…???

We as citizens will just keep funding this elite ANC camp till there is nothing left to fund. This is a very worrying shuffle, confirming that the ANC is ABOVE SA and its citizens. Indeed a sad day…

“Deputy Ministers” do ZERO apart from collect a paycheck each month – whether they are in attendence, or asleep, or suspended.

Who actually does something?
When they do, they get replaced.

Same old people just moved around. The really incompetent ones remain in place. The country is run by ex trade unionists who have no clue how business runs and so do not inspire confidence for the economic future of the country. Zim 2? As many have commented and as I have observed from friend I have spoken to, get money out of the country as soon as you can if you can’t leave.

I really thought the prez (ANC top 6) would make the bold move to appoint the flamboyant Mr. Malema and create a new well suited ministry just for him with a matching flamboyant portfolio – that of Insurgency and Riot Pacification AND cleaning up of all township trash. Eish man.

I look at the inability and arrogance of these people and you can’t help to think of maybe they just do not deserve prosperity. The ANC insists on being right and pick fools who will believe they are right. Tito was obviously tired of arguing with these morons and called it a day. Best of luck to Lesetja Kganyago. The last man who is capable of grade 7 maths in this lot.

Grade 7 maths? Who? Mr Kganyago?

Not sure of your qualifications, but whatever they are, few would be able to do a better job at the SARB than Mr Kganyago! And we can only be grateful that despite the onslaught from the left and EFF, he is still at the helm of this key institution!

Mr “Prescribed “Assets is the new minister of finance. Keep an eye on your pension fund.

The last obstacle has been removed.

The psychology of bad decision making is rooted in confidence, based on incrementally bad behavior without adverse outcomes. Cyril is a black elite BEE billionaire, what does he care when (and not if) things go south?

I have to question Cyril being a Billionaire…. ????

Big Question mark?

Im finding it hard to believe that Someone with his intelligence can make poor decisions.

… and on the other hand …. with his level of Intelligence and slowness in putting on a mask ….. I do think we can have many other billionaires.

My Friday-wishes for you lot who are so one-dimentional in your gut-spilling: If only closed minds came with closed mouths! So, take it with you and think about it this weekend.

Go Check out the interview Carte Blanche had with Enoch (He came across very arrogant). This is the same guy that wants to chase away investors and use our pension funds to fund minerals & energy. South Africa is doomed for sure now!

Par for the course to all in power.

What do you base your statement on that he wants to “chase investors away?”

Sensei or Michael from Krugersdorp missing from the comments?

Capitec CEO Gerrie Fourie R155068.00/per day
First Rand CEO Johan Burger R135260.00 /per day
Standard Bank Sim Tshasabalala R135287.00 /per day
Nedbank CEO Mike Brown R145205.00 /per day
ABSA CEO Maria Ramos R81369.00 /per day
FNB CEO Jacques Celliers R80246.00 / per day

The point of this is these are people that influence along with the reserve bank Chief (induna) Lesetja Kganyago (seriously fiscal conservative) the way South Africa will work

And then the IMF / World Bank

People do not want to recognise this fact. The ANC is not a political party. It is a well organised, well run criminal organisation, licensed to steal, to corrupt, with no recourse. If you want a high performance environment do not look to the SA Government; asseblief mense, kom by! Realise this and your happiness factor will significantly increase.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles:
Click a Company: