SA business reacts to GNU cabinet

South Africa's President Sotirama Pasa has finally announced his much-anticipated cabinet that will comprise the Government of National Unity after a 45-minute delay. The cabinet is larger, with 32 ministers and 43 deputies, and more inclusive with around 11 political parties represented. The new cabinet is also notably younger, with the youngest minister being just 34 years old, serving as the Minister of Basic Education. However, the critical question remains, will this cabinet lead South Africa towards economic growth and address the longstanding issues of poverty, inequality, and unemployment? To delve deeper into this discussion, Mtho Xulu, President of the South African Chamber of Commerce and Industry (SACCI), and Cas Coovadia, CEO of Business Unity South Africa (BUSA), joined CNBC Africa for an insightful conversation regarding their perspectives on the new cabinet. Cas Coovadia of BUSA emphasized the need for a positive mindset to work together and make the new government effective in attracting investment and driving the country towards growth. Despite the delayed announcement, Coovadia believes that speculation about the delay is not as important as focusing on collaboration and moving forward as a nation. The emphasis was on the importance of unity in making the government work effectively. Mtho Xulu of SACCI acknowledged the importance of having a stable cabinet for the business sector. While appreciating the establishment of the new cabinet, Xulu highlighted the need to assess the cabinet's performance based on a 'meritocracy template,' emphasizing the importance of unity and performance in government service. Xulu stressed the significance of the ministers demonstrating a clear understanding of their roles and responsibilities to drive the country's development. Coovadia expressed satisfaction with certain appointments within the economic and financial portfolios of the new cabinet, citing Minister Gorawana's return to finance and Minister Chow's appointment to the Department of Trade, Industry, and Competition as positive choices. Coovadia acknowledged that while technical qualifications in specific areas might not align with the ministerial appointments, leadership and alignment with the country's vision were crucial qualities for the ministers. Xulu echoed the sentiment of prioritizing performance and execution, emphasizing that while all political appointees have mandates to serve, demonstrating a deep understanding of the responsibilities was essential. The conversation also touched on the continuity in certain key portfolios, such as finance, and the implications of a larger cabinet on fiscal prudence. Discussions around policy implications within the new cabinet highlighted the continued dominance of the African National Congress (ANC) in critical areas such as health, trade, competition, and international relations. Both SACCI and BUSA expressed readiness to engage with the new government on policy issues, emphasizing the importance of flexibility and collaboration between the private sector and the government to navigate economic challenges. In conclusion, the dialogue between SACCI, BUSA, and CNBC Africa shed light on the business community's cautious optimism towards South Africa's new GNU cabinet. While acknowledging the importance of stability and unity, the focus remains on performance, effective governance, and collaboration to drive the country towards economic growth and address prevailing socio-economic challenges.