South Africa’s Finance Minister Outlines Fiscal Constraints and Reforms
16:41 14.07.2024 (Updated: 17:49 15.07.2024)
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The first Cabinet Lekgotla of South Africa's Government of National Unity took place at Sefako Makgatho Presidential Guest House in Pretoria on Saturday. The executive, now including 11 opposition parties, met to establish policy priorities for the forthcoming parliamentary session next week.
During the first Cabinet Lekgotla meeting of the Government of National Unity (GNU), South Africa’s Finance Minister, Enoch Godongwana, detailed the nation’s fiscal challenges and proposed reforms.
The minister presented the fiscal parameters for the cabinet to consider in addressing national crises, including poor governance, power shortages, and logistical issues hindering economic growth. Expanding the social security net is expected to be among the critical topics discussed, along with the future of state-owned enterprises, funding for nuclear power procurement, and the implementation of a contentious national health insurance plan, according to Bloomberg.
President Cyril Ramaphosa convened the first Cabinet Lekgotla meeting after the new coalition government was formed on June 30. The outcomes of the meeting will be outlined by the president at the opening of parliament next Thursday, according to Minister in the Presidency Khumbudzo Ntshavheni.
“The GNU is up and alive and working. We are working very hard here,” Ramaphosa said on the sidelines of the meeting. “People are contributing; everyone is talking, so it is a great start to the GNU.”
While Godongwana's actual initiatives can only be guessed at for now, Minister of Electricity and Energy Kgosientsho Ramokgopa gave more details regarding plans for the sector under his responsibility. He announced goals to expand the country's nuclear energy sector to address the electricity deficit. The goal is to obtain Treasury approval for a 2,500 MW power plant by next month.
