South African Finance Minister resigns due to Ramaphosa reorganization

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South Africa Update

South African President Cyril Ramaphosa (Cyril Ramaphosa) cabinet reorganization last month, South African Finance Minister Tito Mboweni (Tito Mboweni) stepped down, this is the most serious turmoil in the country’s democratic history The consequences.

After Ramaphosa said he had accepted Mboveni’s “long-term request” to withdraw as part of the reorganization announced on Thursday, Enoch Godonwana, the economic policymaker of the ruling African National Congress, will Take over the Ministry of Finance.

Ramaphosa told the country what he called “Attempted uprising“Last month, more than 330 people were killed and destroyed in businesses and infrastructure in Gauteng and KwaZulu-Natal, two major provinces.

The President said that during the riots, the security services were “deficient in several areas.” This was due to Jacob Zuma goes to jail, The former president, flouted the court.

It is widely believed that the police and intelligence agencies failed to act on the warnings Factional struggle The control of the ANC is about to erupt in an open conflict.

Ramaphosa said that South Africa’s Ministry of National Security will be abolished and intelligence supervision will be handed over to the President. He also changed his secretary of defense and announced the formation of a team of experts to investigate security deficiencies. The head of an investigation into the corruption and politicization of South African spies under the leadership of Zuma will also become a national security adviser.

The change in the finance minister comes at a critical moment in Ramaphosa’s attempt to revive Africa’s most industrialized economy.

Mboveni, a veteran former governor who was former governor of the South African Reserve Bank, became Finance Minister in 2018 Damage government finances The corruption and stagnant growth of the system under Zuma are becoming clear.

He was the first to try to curb bloated public sector wage bills and high-cost bailouts for indebted state-owned enterprises to avoid the imminent sovereign debt crisis he warned about. The move angered the unionist allies of the ANC.

This Pandemic Fiscal tensions intensified last year, causing debt to exceed 80% of GDP.However Commodity prices skyrocketed Tax revenue exceeded expectations.

Ramaphosa said that Mboveni “effectively and ably guided the treasury through extremely difficult times, provided instability and instilled confidence.”

For many years, Godonwana has been the head of the economic transformation of the African National Congress and has been at the core of the party’s policy struggle. In 2019, he became the chairman of the Southern African Development Bank, a government-owned regional bank.

Razia Khan, chief economist for Africa and the Middle East at Standard Chartered Bank, stated that Godongwana “has been known to investors for some time” and “will be given the attributes of a role that may enhance the possibility of reform in South Africa.”

“It is especially important that he has the ability to work with other ANC members and win their support to support the much-needed promotion of growth and fiscal reforms,” ​​Khan added.

Ramaphosa stated that he also accepted the resignation of Health Minister Zweli Mkhize. Implicated Among the suspected robbery of resources related to the pandemic. Mkhize, who denied wrongdoing, was replaced by his deputy Joe Phaahla.

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