New R1 billion hole for South Africa
President Cyril Ramaphosa has announced his new cabinet, which is set to cost the taxpayer over R1 billion annually.
Following the 2024 election, the ANC’s support dropped to roughly 40%, forcing it into a Government of National Unity (GNU).
10 other parties joined the GNU, including the DA, IFP, PA, FF Plus, Good, Rise Mzansi, Al Jama-ah, UDM, PAC and the UAT.
These parties hold over 70% of the seats available in parliament.
During his cabinet announcement yesterday, June 30, Ramaphosa admitted that he wanted to reduce the size of the cabinet during the sixth administration (2019 to 2024).
However, with the greater number of parties involved, Ramaphosa extended the number of minister positions to 32 through the following moves:
- Ministries of Electricity and Energy will now be merged;
- A Ministry for Mineral and Petroleum Resources;
- Ministry of Agriculture separate from Land Reform and Rural Development;
- Separate the Ministry of Higher Education from Science, Technology and Innovation;
- Separate the Ministry of Justice and Constitutional Development from Correctional Services;
- Dissolve the Ministry of Public Enterprises.
The DA previously called for the number of cabinet positions to be cut down to 15.
Newly-appointed Home Affairs Minister Leon Schreiber even tabled the “Cut Cabinet Perks Bill” in Parliament last year.
In 2019, the Department of Public Service and Administration submitted a report to the President on the state’s macro-reorganisation and called for reducing the cabinet. However, no action has been taken.
The Centre for Development and Enterprise (CDE) recommended reducing South Africa’s cabinet to 20 ministers.
The CDE suggested that ministries that should be cut include Higher Education, Science and Innovation (which has been separated into two), Public Works and Infrastructure, Small Business Development, and Public Enterprises (which is no longer a ministry).
High costs
ActionSA leader Herman Mashaba said that South Africans have been calling for a reduction in the size of the cabinet for several years, as the country has one of the largest cabinets in the world.
Mashaba said that the new cabinet will cost over R1 billion annually in benefits and perks.
R180 million will be paid to ministers and deputy ministers in salaries alone, with each Minister and Deputy Minister getting R2.68 million and R2.2 million annually, respectively.
Taxpayers will also have to cover R500 million for VIP protections and security and over R390 million for support staffing.
These figures do not even account for the additional costs associated with as many as two residences afforded to Ministers and Deputy Ministers.
In 2019, the Department of Public Service and Administration submitted a report to the President on the state’s macro-reorganisation and called for reducing the cabinet. However, no action has been taken.
“It remains to be seen whether the ANC and DA will continue to pursue these objectives within the new grand coalition where loyalty depends on patronage and perks,” said Mashaba.
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