Trimming the fat: Why SA’s cabinet must shrink to save the economy

Key topics:SA’s cabinet is bloated with over 70 ministers and deputiesCutting to 10 ministries could save taxpayers over R100 million yearlyA leaner cabinet can drive tax reform and boost economic growth.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Ayanda Zulu*.We should call a spade a spade: any discussion around raising VAT or any other tax in while government can instead rein in its own extravagant spending habits, is an insult to all hardworking South African taxpayers – particularly the poor.South Africa’s cabinet has grown into one of the largest in the world. With more than 70 ministers and deputy ministers across 32 portfolios, what it represents far outstrips anything the country’s economy can sustain. This isn’t merely a matter of optics; it’s a fundamental economic issue. Each additional minister – beyond their own salary, security, and personal staff – means more bureaucracy, higher administrative costs, and an expanded political machinery, all of which demand funding through taxation and debt. The taxes that burden businesses, workers, and entrepreneurs drain the productive sector and stifle innovation and investment. In short, the bigger the cabinet, the heavier the burden on economic growth.When we look at global comparisons, the contrast is striking. Take Switzerland, for instance, which operates with a cabinet of just seven ministers. This streamlined structure allows the government to focus on enabling economic freedom rather than maintaining a bloated apparatus. The result is a lighter tax burden and a thriving private sector that drives steady and sustainable growth. Conversely, South Africa’s oversized cabinet diverts resources away from productive economic activity and makes it harder for businesses to thrive and citizens to prosper.The Free Market Foundation (FMF) has called for a reduction in the size of cabinet in terms of its Liberty First policy agenda (www.LibertyFirst.co.za). We propose cutting the current 32 portfolios down to just 10 ministries. A leaner cabinet would reduce administrative costs and eliminate unnecessary bureaucracy, and all the state interference associated with it. This approach would free up valuable resources and allow the government to focus on enabling economic growth.Recent estimates suggest that the salary and operational costs of a single minister, along with their administrative team, run into millions of rands annually. By reducing the cabinet size from 32 to just 10 ministries, we can expect significant savings in both direct costs and overheads. These savings could be redirected toward more productive areas, including tax relief and economic reforms. While the exact figures would depend on a detailed audit, preliminary estimates indicate that streamlining the cabinet could save approximately R103 million annually. This money alone – which only accounts for the minister’s immediate political ecosystem and not the bloated departments they represent – could be better spent on initiatives to boost the economy and reduce the tax burden on South Africans.Our recommendation is based on the principle that only the cabinet positions explicitly or by necessary implication required by the Constitution should remain. These are the Presidency (including the Deputy President), Finance, Defence, International Relations, Justice, Home Affairs (including Police), Cooperative Governance, Public Service, Public Works, and Social Development. Other ministries, which are not constitutionally mandated, can be consolidated or preferably abolished outright. By streamlining the cabinet, we would not only cut the costs of the ministers and their high-level staff, but also the massive wage bills represented by their departments. This would create room for much needed tax reform to lower the burden on businesses and individuals, driving economic growth in the long term.Reducing the cabinet size will create a more efficient government that is focused on the core functions of the state. With fewer resources tied up in political vanity projects and legions of administrators and bureaucrats, the government will be in a better position to drive fundamental policy change. We argue in Liberty First that this must include modest cuts to income tax, followed by the gradual phasing out of non-standard taxes such as sin taxes, excise duties, and luxury taxes. These tax reductions will empower businesses to grow and create jobs, while giving South Africans more disposable income and greater economic freedom to reinvest in their own futures.Privatisation must also a critical component of our economic reconstruction. Reducing the size of government opens the door for increased private sector participation, particularly in areas where competition can spur innovation and efficiency. The liberalisation of sectors such as energy, where state monopolies like Eskom have failed to deliver, is an essential next step in revitalising the country's economy. Encouraging private investment in energy, transportation, and other key industries will stimulate growth, reduce the strain on public finances, and ultimately lead to better services for all South Africans.Reducing the cabinet is not a standalone fix, but it is a critical starting point. By creating a government that is leaner, more efficient, and better aligned with the needs and interests of a growing though relatively poor economy, South Africa can pave the way for a brighter and more prosperous future. This reform will help restore trust in governance and set the stage for the country to overcome its most pressing challenges. .*Ayanda Sakhile Zulu holds a BSocSci in Political Studies from the University of Pretoria and is an intern at the Free Market Foundation.

Trimming the fat: Why SA’s cabinet must shrink to save the economy

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