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Pretoria - President Kgalema Motlanthe's remarks about future economic policy have allayed fears that radical changes are on the cards.
Dr Ruth Stroppiana and Melanie Bowler of Moody's Analytics economic research division, Moody's Economy.com, say his appointment brought calm to a turbulent week.
In his inaugural address Motlanthe said that he did not plan to deviate from something that was working.
"It's not for me to reformulate policy... I won't allow government's work to be interrupted."
He gave the assurance that poverty and unemployment would be halved by 2014.
Standard Bank economist and fiscal expert Jan Botha says Motlanthe gives the impression of being a calm person. In the light of what had happened he clearly wanted to create tranquillity.
Botha reckons the only snag is the appointment of Brigitte Mabandla as public enterprises minister.
"On Monday she'll probably walk in with critically important Eskom projects that need to be signed off and set in motion."
The Eskom debacle continues to have serious economic implications for future growth. Botha says the appointment shows that little thought has been given to the department's importance.
"This is probably the weakest appointment. The other appointments in the new cabinet have to some extent succeeded in ensuring continuity."
Stroppiana and Bowler point out that economic growth is already on the decline, with consumer expenditure flat and retail sales contracting. They say Motlanthe's remarks about retaining economic policy and intensifying efforts to create jobs should be seen in a positive light.
"A key priority for the government is to bring the unemployment rate down from 23% to 14% by 2014. Jobs data published this week indicate a 0.6% increase in non-farm employment during the second quarter, driven by appointments in mining, construction and financial services."
In his address Motlanthe said South Africa would remain faithful to the policy that had kept the country on track in turbulent international economic conditions.
As for the absence of a deputy minister in the office of the fiscal policymaker, Botha said National Treasury remained a difficult department.
The post is politically sensitive and will become even more so. He says Jabu Moleketi, who resigned as deputy, is highly regarded and the new government could perhaps have done more to retain him.
- Sake24