31 March 2017

BUSA expresses deep concern about Cabinet reshuffle, but will seek to work with new ministers in the interests of the country

Business Unity South Africa (BUSA) is deeply concerned about the ramifications of the extensive Cabinet reshuffle announced by the President in the early hours of Friday morning, but respects the President’s prerogative to do so. BUSA intends to work with the new Ministers in the best interests of the economy and the country.

BUSA’s view is that the timing of the reshuffle is most unfortunate. It has the potential to compromise both political and economic stability unless the Executive can demonstrate the necessary capability and consistency, in a responsible manner, to radically transform the economy to achieve the required inclusive growth and employment creation objectives.

The reshuffle has had an immediate impact on the value of the rand. This, together with the uncertain political implications, will have significant impact and may undermine the progress made by business and its social partners, Government and organised Labour over the past year.

“South Africa is a resilient country. We are committed to rallying around South Africa Inc. despite any negative impact from the reshuffle” , says BUSA President, Jabu Mabuza.

BUSA will be calling an urgent special board meeting within the next few days to assess the potential impact of the Cabinet reshuffle on the economy and to business as a whole. “Businesses large and small will be affected by the state of our economy. We will keep the country’s interests at the center of the business response” stated BUSA CEO Tanya Cohen.

BUSA expressed its thanks to the former Minister of Finance, Pravin Gordhan and former Deputy Minister, Mcebisi Jonas for their service to the country and for their principled and capable leadership of the Treasury.

BUSA plans to seek a meeting shortly with the new Minister of Finance Malusi Gigaba, and his Deputy Sifiso Buthelezi with a view to discussing how business can continue to cooperate with Treasury to achieve the much-needed structural shifts required by the economy to meet the developmental objectives of the country.