S. Africa Prepares To Propose Government Reconfiguration In 2024

Finance Minister Enoch Godongwana announced plans to review and restructure the government in order to streamline its operations and reduce the burden of state coffers. His comments echoed an earlier declaration of President Cyril Ramaphosa, who in his State of the Nation Address pledged to reconfigure the government.

• While Godongwana did not reveal any fresh details on the planned restructuring, he hinted that more information will be included in the 2024 Budget Review, which will "propose to scale down outdated and unproductive programmes and entities".
• Godongwana outlined four criteria that will be applied in the reconfiguration process: (1) the performance record and size of an entity; (2) whether a department can be absorbed by a bigger one; (3) whether there is duplication between departments; (4) whether there is lack of clarity about a legislative mandate.
• African National Congress (ANC) Secretary General Fikile Mbalula said that the party supports the plan to close and merge some government departments, which is in line with the resolutions taken by the party during its 2022 elective conference.
• The reconfiguration of the government will inevitably lead to frictions within the government and the ruling party, with various factions seeking to retain their influence. The Mail & Guardian reported that one of the ministries affected by the restructuring could be the embattled Ministry of Public Enterprises.
• In addition to the plan to restructure the government, the National Treasury unveiled a plan to include a new fiscal anchor in the 2024 Budget Review. A senior official with the Treasury said that the new anchor will be binding, contrary to the existing expenditure ceiling.