Is It Possible that Cutting Down the Size of the Cabinet Saves R3.5 Million Per Year? How Could a Smaller Cabinet Enable Employment of South Africa’s Graduates?
South Africa faces a number of problems including urgent economic problems, rising unemployment especially among the youth, and a tightening of the public fiscus. It is in these difficult circumstances that the South African executive cabinet’s size has been recommended as Congress as a (less complicated… smaller… less expensive…) cabinet. With the president’s comments about the needing a smaller government, the question becomes, ‘what would we do with the multitude of savings?
As South African has been speculated about R3.5 million savings annually with government restructuring, these numbers could be directed in the creation of hundreds of jobs opportunities in unemployed graduates which has been one of the most vulnerable position in the job market for a long time. This article explains the possible savings, the logic of cabinet reduction, and the use of savings to employ graduates in the government directly.1. The Magnitude of Spending on the Executive Arm of the State
The South African cabinet has been critiqued as unduly large. The observation of a mismatch in the size of the cabinet with the population of the country as well as its economy has been noted. A bigger cabinet means more government spending, not only on the salaries of the ministers, but on:
Salaries of deputy ministers
Support and advisory personnel
Official cars and travel allowances
Security and VIP protection
Offices, housing, and the administrative costs
Overhead costs of the departments assigned to each minister
Unfortunately, the precise amounts are never constant from year to year; however, from the size of the executive one can safely say that the costs in the billions are significant. A 50% cut in the size of the executive would at a minimum remove administrative duplication in the form of deputy ministers as well as ministerial functions. The result would be streamlined governance and significant savings.
How savings of R3.5 billion in one year is Possible with the Cut in the Size of the Executive
The saving of R3.5 billion in one year is due to other savings that are possible as a result of:
The cutting out of dysfunctional ministries and the consolidation to larger departments with the smaller ones being absorbed.
Reduction in deputy ministerial positions that are more of a burden at an administrative cost of a deputy minister in the portfolio.
Reduction in the expenditure of ministers in having VIP protection which is a huge cost in the budget.
Reduction in the administrative units and therefore the excessive duplication of personnel in an organisation.
Given the compounding nature of long-term savings, the figure in question may be on the conservative side, as more efficient governance coupled with simplified bureaucratic processes will yield greater savings.
The Potential Impact of the Savings: Graduate Unemployment
One of the most painful socio-economic realities facing South Africa is the extremely high youth unemployment rate. Given the most recent national data, it is obvious that there is still a significant gap in the employment prospects of the youth, especially with a higher education qualification, as education is perceived to be a powerful tool for socio-economic mobility.
Government departments are perennial understaffed, skills deficient, and administratively backlog. This presents a valuable opportunity to re-channel cabinet savings into state graduate employment schemes, with a double positive outcome of:
- Alleviating youth unemployment
- Enhancing government service delivery
Here are some of the most critical and high-demand sectors within which thousands of unemployed graduates could be absorbed in a moment’s notice.
Sectors Within Government That Could Employ Graduate Talent
a. Education and Basic Services
South Africa is plagued by a chronic shortage of educators, overcrowded classrooms, and an administrative overload of the school system and district level. Funds that will be saved from reduction of cabinet could be used to hire:
- Teaching Assistants
- ICT and E-Learning Support Staff
- School Psychologists and Counselors
- Curriculum Development Assistants
- Early Childhood Development Practitioners
This will improve learning outcomes to a great extent and provide much needed support to the already overburdened teachers.
b) Health Department
There are ongoing pressures to public healthcare facilities where graduates will be able to fill the following roles:
- Administrative Officers
- Laboratory Health Support Officers
- Health Systems Support Technicians
- Health Public Researchers
- Mental Health Assistants
The expansion will increase the level and accessibility of health care services to underserved populations.
c) Local Government and Municipal Support
Numerous municipalities experience skill gaps and poor governance. The employment of graduates will assist and help ensure:
- Town Planning
- Financial Management & Audit
- Environmental Management
- Maintenance Planning of Infrastructure
- Community Development Initiatives
This will assist municipalities and enhance service delivery.
d) Technology and Digital Transformation
The South African public sector is in desperate need of IT modernisation. The employment of graduates in IT will assist in:
- Public record digitisation
- Development of apps for citizens
- Cybersecurity
- Data Analyses
- Technology in AI and Automation
This will incorporate the government into a new digital era and create thousands of high quality jobs.
5) The amount of R3.5 Billion will create a potential number of jobs –
If the estimated average annual cost for employment of a graduate (salary, benefits, and training) is R200,000, then:
R3.5 Billion has the potential to finance approximately 17 500 graduate jobs available annually.
Considering administrative and project expenses, the estimate can still be between 12,000-15,000 a year workforce participation, a staggering relief for a nation experiencing youth unemployment crisis.
These are not intended to be stipend or pseudo-jobs, rather, they are intended to be designed as substantive entry-level opportunities, complete with formal work experience, professional advancement, and pathways to permanent government employment.
The Ripple Effects of Employment
A leaner cabinet with repurposed funds for youth employment will help the entire nation in the following ways:
a. Better Government Functionality
Fewer ministries with distinctly defined missions create less duplication, and less through fragmentation of policy and bureaucracy.
b. Increased Confidence
Having the government demonstrate discipline in spending will help rebuild the public’s trust in the government to manage the country’s finances.
c. Increased Economic Activity
Graduates who obtain employment have a disposable income to circulate in the economy, which enhances spending at the less businesses.
Is it possible to reduce the size of the cabinet?
Yes, but it will take political will. The size of cabinet has been a topic of discussion for many years, with a number of specialists in South Africa encouraging the idea that the country can be highly functional with.
Countries with larger populations and more complex economies deal with far fewer ministers. South Africa can too.
An assumption that halving the cabinet leads to R3.5 billion savings annually goes beyond just numbers on a spreadsheet. It speaks to the prospect of rescuing a nation. Employment of young graduates would:
Reduce unemployment.
Fortify/boost public institutions.
Modernise the state.
Increase activities in the economy.
Restore confidence of the citizenry in the leadership.
For President Cyril Ramaphosa to veto such a move would indicate a contrarian position to the foregoing sentiments. He would be saying that the government is prepared to lead the nation, demonstrate initiative, prune the surplus, and make the required investments in the nation’s future. It is just the kind of action required in a highly despondent society. It would be providing the society with hope and opportunity and it would be the catalyst for action on the ground.
