Explainer: Why it's important to keep Gordhan and Mboweni in Cabinet

Explainer: Why it's important to keep Gordhan and Mboweni in Cabinet

- The Rand has strengthened since Cyril Ramaphosa's Cabienet announcement

- This has widely been attributed to the retention of Tito Mboweni and Pravin Gordhan

- The two appear to be Ramaphosa's closest allies in terms of his economic agenda and his planned SOE reforms

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While there are several new faces in Cyril Ramaphosa's Cabinet, Tito Mboweni and Pravin Gordhan will stay on as finance and public enterprises ministers, respectively.

These two appointments have largely been credited for the Rand's improvement following the Cabinet announcement. 

Both figures are viewed as key to Ramaphosa's agenda of reforming state-owned institutions.

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Gordhan is currently overseeing the overhaul of Eskom, and his retention of his post indicates that that process will continue uninterrupted for the time being. 

Similarly, Mboweni has also spoken about overhauling SOEs, at one point even publicly questioning why they were necessary at all. (This drew the ire of COSATU, who pushed for Mboweni to be removed, but it appears that Ramaphosa possesses enough political muscle to keep him in place for now.)

Ebrahim Patel, a candidate from outside Parliament, will likely play a role in this agenda through his post as Minister of Trade and Industry and Economic Development, according to Eyewitness News.

With South Africa's economy still sluggish and its unemployment rate actually worsening in recent months, these ministers will have a tough task ahead of them.

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They will have to attract foreign investment and provide economic conditions conducive to growth, all while battling forces within the SOEs that are resistant to reform.

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Source: Briefly.co.za

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