South Africa - 02

South Africa: Rumored Cabinet Reshuffle Unlikely to Impact IOCs

Amid rumors circulating over the past few months that President Jacob Zuma will reshuffle his cabinet, the tragic death of Minister of Public Service and Administration Collins Chabane in a car accident on 15 March has raised the likelihood of more imminent action. During his first term, Zuma reshuffled his cabinet four times, far more regularly than his predecessor, Thabo Mbeki. However, as Zuma’s cabinet appointments tend to prioritize political support over performance, it is difficult to assess which ministers may be replaced in a reshuffle. For IOCs, there are three main departments that influence the energy sector: the Department of Energy, the Department of Mineral Resources and the Department of Public Enterprises. While there are various ministers who could ostensibly be removed for poor performance since their appointments following the May 2014 general elections, widespread changes in any cabinet shuffle, and particularly impacting key ministers, are unlikely.

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