President Cyril Ramaphosa on Wednesday announced the new Cabinet, a move that has been much anticipated by the South African property sector seeking growth in the country.
“With the elections now over and the Cabinet announced, we can now start to expect more movement in the property sector across South Africa.
Along with decreasing property vacancy levels, the new Cabinet should yield a positive capital inflow of foreign investment, bring stability and economic growth,” said Ortneil Kutama, SA Commercial Prop News Media Director.
During the lead-up to the elections, investors were cautious of an upset and, given the geared nature of the asset, possible significant capital loss. “With increased political clarity and the Cabinet now out of the way, we can expect investors to once again transact which will be a much-needed shot in the arm for the property sector.” Kutama said.
Kutama adds: It’s no secret that 2018 was a difficult year for local investors with most asset classes declining in value.
“Business and consumer confidence are low and this places strain in certain property sectors, such as the office and retail markets. Confidence will return once there is improved policy certainty.”
Meanwhile, the listed property sector has recovered very slowly so far in 2019 after the asset class took a hit in 2018. According to research by Anchor Stockbrokers, the FTSE/JSE SA Listed Property Index (Sapy) had returned 4.7% in total, including capital and dividend growth up to torwads end of April. The All Property Index, which includes all real estate companies on the JSE, returned 3.5%. This was while the JSE Top 40 returned 13.3%.
“The property market is not out of the woods quite yet,” Kutama says, “but we are expecting a slow and steady improvement in activity and growth over the next year. How quickly this happens depends on how well President Ramaphosa’s government upholds their election promises, and how successfully they can earn back the confidence of citizens and investors.”
Ramaphosa announced a trimmer, female-dominated cabinet during an address to the nation at the Union Buildings on Wednesday evening.
2019 Full List of Cabinet Ministers:
The Deputy President – David Mabuza
The Minister of Agriculture, Land Reform and Rural Development – Thoko Didiza
The Minister of Basic Education – Angie Motshekga
The Minister of Communications – Stella Ndabeni-Abrahams
The Minister of Cooperative Governance and Traditional Affairs – Dr Nkosazana Dlamini-Zuma
The Minister of Defence and Military Veterans – Nosiviwe Mapisa-Nqakula
The Minister of Environment, Forestry and Fisheries – Barbara Creecy
The Minister of Employment and Labour – Thulas Nxesi
The Minister of Finance – Tito Mboweni
The Minister of Health – Dr Zwelini Mkhize
The Minister of Higher Education, Science and Technology – Dr Blade Nzimande
The Minister of Home Affairs – Dr Aaron Motsoaledi
The Minister of Human Settlements, Water and Sanitation – Lindiwe Sisulu
The Minister of International Relations and Cooperation – Dr Naledi Pandor
The Minister of Justice and Correctional Services – Ronald Lamola
The Minister of Mineral Resources and Energy – Gwede Mantashe
The Minister of Police – General Bheki Cele
The Minister in the Presidency – Jackson Mthembu
The Minister in the Presidency for Women, Youth and Persons with Disabilities – Maite Nkoana-Mashabane
The Minister of Public Enterprises – Pravin Gordhan
The Minister of Public Service and Administration – Senzo Mchunu
The Minister of Public Works and Infrastructure – Patricia De Lille
The Minister of Small Business Development – Khumbudzo Ntshavheni
The Minister of Social Development – Lindiwe Zulu
The Minister of Sports, Arts and Culture – Nathi Mthethwa
The Minister of State Security – Ayanda Dlodlo
The Minister of Tourism – Nkhensani Kubayi-Ngubane
The Minister of Trade and Industry – Ebrahim Patel
The Minister of Transport – Fikile Mbalula
Ramaphosa said he would sign performance agreements with all ministers and deputy ministers. “Their performance — individually and collectively — will be closely monitored against specific outcomes,” Ramaphosa said. “Where implementation is unsatisfactory, action will be taken.”
A number of ministries have also been merged:
• Trade and industry is combined with economic development
• Higher education and training is combined with science and technology
• Environmental affairs is combined with forestry and fisheries
• Agriculture is combined with land reform and rural development
• Mineral resources is combined with energy
• Human settlements is combined with water and sanitation
• Sports and recreation is combined with arts and culture
Outgoing Ministers who did not make it:
Ramaphosa revealed that the number of Cabinet portfolios would be trimmed down from 38 to 28 to promote “greater coherence, better coordination and improve efficiency”.
Within a few minutes of the announcement, the rand had strengthened 0.5% to R14.6527/$.
Source: SA Commercial Property News http://www.sacommercialpropnews.co.za/south-africa-economy/9032-new-cabinet-the-last-gleam-of-hope.html