Since Gigaba controversially replaced Pravin Gordhan in March, the National Treasury has made a series of key personnel changes, including the position of chief procurement officer. Several important department positions are also vacant, while statements by Gigaba's economic advisers have prompted investor concerns over policy ruptures. Personnel overhaul at the ministry is creating deep institutional unease between longstanding advocates of fiscal prudence and newer officials more closely aligned with the government’s commitment to more radical 'transformation' policies.
The Treasury will lose significant institutional knowledge as experienced staff depart.
Populist ANC budgetary commitments, such as free tertiary education, could undermine long-term deficit reduction targets.
An increasingly divisive ANC leadership campaign will further unsettle investors and rating agencies.
