South Africa’s new coalition cabinet unveiled

South Africa's new coalition government has split the energy portfolio from mining and merged it with electricity, shrinking the remit of former mineral resources and energy minister Gwede Mantashe.

Responsibility for the merged portfolio has been given to the former electricity minister, Kgosientsho Ramokgopa, who proved successful in alleviating the country's rolling power cuts.

On 28 June, state-owned utility Eskom marked around three consecutive months without any power cuts. This compares with 2023, when South Africa experienced its worst year of loadshedding yet.

Mantashe, who wields significant political power as chairperson of the African National Congress (ANC), has been assigned a smaller mineral and petroleum resources portfolio.

A new ministerial cabinet was announced just over a month after the ANC lost its majority for the first time since it came to power, forcing it to form a government of national unity (GNU) with main opposition party the Democratic Alliance (DA). More parties have since joined, so that a total of 11 parties now form part of the GNU.

Contrary to the ANC's previously stated intention to reduce the number of ministers, the new national executive comprises even more "to ensure that [it] is inclusive of all the parties," said ANC leader Cyril Ramaphosa, who was re-elected as president for a second term.

"In some instances, we have considered it necessary to separate certain portfolios to ensure that there is sufficient focus on key issues," Ramaphosa said.

The Energy Intensive Users Group (EIUG) of South Africa welcomed the establishment of a dedicated electricity and energy ministry, which can exclusively focus on helping Eskom to fulfil its mandate.

The appointment of Ramokgopa as minister overseeing the new ministry also bodes well for continuity of plans already in place, the EIUG said. "We hope his broader mandate will expedite the much-needed transformation of the energy and electricity industry."

The Minerals Council South Africa (MCSA) welcomed the separation of the minerals and energy portfolios as it will allow Mantashe "to focus on and give urgency to creating the right legislative environment to grow the mining industry," it said.

South Africa's attractiveness as a mining investment destination has plummeted over the past decade and the country now ranks among the bottom 10 in the world, according to the Fraser Institute.

Regulatory requirements in various departments — such as water, agriculture, forestry, fisheries and environment — must be harmonised to expedite the awarding of exploration and mining rights, the MCSA said.

Equally important is the implementation of a mining cadastre, a digital platform to transparently and efficiently manage mineral right applications and licences, it said.

Under the new administration, former department of forestry, fisheries and the environment (DFFE) minister, Barbara Creecy, was reassigned as transport minister, while the DA's Dion George was appointed in her place to oversee the DFFE.

Former finance minister Enoch Godongwana, under whom South Africa recently achieved its first primary budget surplus in 15 years, was reappointed in the same position.

By Elaine Mills