New appointments and strong treasury leadership should set markets at ease
Cabinet choices a boost for business
April 29, 2004
 By Lynda Loxton
Cape Town - A combination of new and old faces as well as the considerable strengthening of the treasury by President Thabo Mbeki as he announced his new cabinet yesterday should set financial markets at ease about the future governance of the country.
Of course, not all analysts were satisfied, but the fact that Trevor Manuel will stay on as finance minister while the very capable Jabu Moleketi, Gauteng's former finance MEC, will become his new deputy, ensured continued stability and market acceptance, they said.
Such a move has been whispered about for some time. It will give Moleketi time to settle into the treasury before Manuel moves on to another high-ranking post in the government or in an international organisation in about three years' time, as has often been speculated.
Manuel's former deputy, Mandisi Mpahlwa, who has been judged a steady and methodical worker, will head the ministry of trade and industry while the former minister, Alec Erwin, moves on to head the ministry of public enterprises.
Erwin's well-known and respected negotiating powers should come in handy in the tortuous restructuring of public enterprises. His union background will also help him persuade labour that restructuring does not necessarily mean selling off the national wealth but making its assets work better.
The move by Jeff Radebe from public enterprises to transport makes sense: he has been overseeing the transport portfolio for the past few months, since Dullah Omar fell seriously ill and subsequently died.
He knows all about the restructuring problems in the state-owned transport system that he and Erwin will have to handle. Maybe their combined efforts could lead to quicker action on all fronts, especially in moving exports through currently congested ports and improving commuter transport.
Mpahlwa's appointment came as a surprise to some analysts, but his engineering qualifications should stand him in good stead when dealing with the complex needs of industry. The retention of Lindiwe Hendricks as deputy minister will provide stability in the transition period.
The fact that Geraldine Fraser-Moleketi will remain minister of public service and administration will provide continuation in the much-needed drive to reform the civil service in all three tiers of government. Greater efficiency, less corruption and a reduction of red tape have been her main aims.
Minerals and energy minister Phumzile Mlambo-Ngcuka will stay on in that post.
This is seen as crucial since many aspects of her ground-breaking "charter" approach to black empowerment need to be wrapped up over the next five years.
She has done the hard bargaining with the mining houses and knows best how to cajole them to meet the 25 percent target.
Her new deputy, Lulu Xingwana, is an unknown factor but has been critical in parliament committee meetings about the willingness and ability of the mining houses to meet their empowerment commitments.
Not everyone in the information and communications technology (ICT) industry was happy yesterday that Ivy Matsepe-Casaburri would stay on as minister of communications, mainly because of the delays in major operations such as the establishment of the second national operator.
But Mbeki said she would get extra support from her new deputy, Radhakrishna "Ray" Padayachee. Little is known about him except that he is "very knowledgeable" about the ICT sector.
Bheki Sibiya, the chief executive of Business Unity SA, the new umbrella body, said he was sure that Mbeki had given careful consideration to the need to ensure continuity as well as increase delivery by all government departments.
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