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PRETORIA. — President Jacob Zuma yesterday announced his new Cabinet.
He appointed former junior minister Nhlanhla Nene to become the country’s first black African finance minister.President Zuma made the announcement after being sworn in for a second term, and promising radical social and economic transformation in the next five years.
In the 20 years since South Africa struggled free from the fetters of racist apartheid rule, the economy remains predominantly in white hands, despite a raft of empowerment programmes.
Nene had served as an understudy to finance chief Pravin Gordhan.
His appointment came amid pressure from within the ruling ANC to put more economic power in black hands as a statement of intent.
But the appointment of a relatively inexperienced finance minister after the post was occupied by Gordhan and similarly well regarded Trevor Manuel, will test investors’ faith in the South African economy.
The rand has been under pressure for months and ratings agency have warned that deficits, high unemployment, slow growth and policy stasis may prompt a further credit downgrade to junk bond status. That could the raise the cost of borrowing for the South African government and prompt international investors to look to other faster-growing emerging markets in Africa.
“We have established a ministry of telecommunications and postal services,” Zuma said while making his Cabinet announcement.
“Our country has a fast growing telecommunications sector which in 2012 was estimated at being worth R180 billion.”
The aim of the new ministry was to get more value out of the telecommunications sector, he said.
The communications department had been reconfigured to include more functions.
“We have established a new communications ministry which will be responsible for overarching communication policy and strategy, information dissemination and publicity, as well as the branding of the country abroad,” Zuma announced.
“This ministry will be formed out of the following components: the Independent Communications Authority of South Africa, the SA Broadcasting Corporation, Government Communication and Information Systems, Brand SA and the Media Development and Diversity Agency.”
The National Planning Commission and the ministry of performance, monitoring and evaluation will be merged.
“This ministry will also continue to be responsible for youth development.” — Sapa/HR.
Online Reporter