South Africa: A New Minister of Finance & A New Fiscal Dispensation

SOUTH AFRICA - In Brief 30 Mar 2017 by Iraj Abedian

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Malusi Gigaba is South Africa's new Minister of Finance, and his deputy is Mr Sfiso Buthelezi. Previously, Gigaba has been Minister of State Enterprises before, and in the recent past he was Minister of Home Affairs. He is a staunch Zuma supporter, and the face of new generation of ANC leaders. During his term as Minister in charge of State Enterprises, fiscal discipline was not his field of concern, and for that matter his deputy minister, Sfiso Buthelezi is no fan of fiscal discipline either. Furthermore, Gigaba is known with close relations with the Gupta Family. The Gupta's have had ongoing tension with the National Treasury, and even ongoing court cases. It is highly likely that the relations between the National Treasury and The Gupta's will heal swiftly and quietly. As likely, the National Treasury's position with regard to the nuclear power project will shift, and the recapitalization of State Owned Enterprises will become unconditional, and so the tension within the structures of National Treasury is bound to rise. The chances for a number of key executives of National Treasury exiting is quite high. Clearly, a new fiscal dispensation is about to dawn in South Africa.