Efforts to Cut High Governance Costs in South Africa and Nigeria

The High Cost of Governance in South Africa and Nigeria

Corruption and poor governance have plagued many African nations, hindering economic growth and development. Two countries that have struggled with these issues are South Africa and Nigeria, the continent's largest economies. While progress has been made, more work is needed to curb wasteful spending and patronage in government.

Cyril Ramaphosa Seeks to Cut Costs in South Africa

Cyril Ramaphosa was elected President of South Africa in 2018, after the tumultuous years under Jacob Zuma. Zuma's presidency was mired by countless corruption scandals and the mismanagement of state-owned enterprises. Ramaphosa campaigned on a platform of clean governance and economic revival. One of his key priorities upon taking office was to cut down the bloated costs of running the government. Over the years, ministers, directors-general, and senior managers in the public sector had gotten accustomed to lavish perks like luxury vehicles, expensive hotels, and first-class flights. This excess was costing the government billions of rands annually. Ramaphosa saw it as wasteful spending that should rather be directed towards pressing needs like job creation, service delivery, and economic stimulation. In 2018, Ramaphosa introduced cost-cutting measures for public office bearers and senior officials. This included capping the prices of vehicles purchased for ministers and directors-general. Limits were placed on hotel accommodation and air travel class. The measures were expected to save over R2.8 billion in the 2018/19 fiscal year. Additional austerity steps were announced in 2020, as the COVID-19 pandemic strained public finances. Ramaphosa froze salary increases for high-earning public servants including MPs, traditional leaders, and judges. South Africa was spending over R600 billion a year on the public sector wage bill, representing 35% of consolidated government expenditure. With the country in recession, Ramaphosa emphasized the need to redirect funds towards short and long-term economic objectives. While cutting excessive governance costs alone won't revive the economy, it indicates responsible stewardship of public money.

Julius Malema Criticizes Political Favoritism in South Africa

Julius Malema, leader of the opposition Economic Freedom Fighters (EFF), has been highly critical of the ANC government's patronage network. He accuses the ruling party of rewarding loyalty through state appointments rather than competence. In 2018, Malema told Ramaphosa that the ANC's list of candidates for Parliament featured "factions, friends, and families". He lamented that hard-working branch members who delivered election victories were overlooked. Malema pointed to directors-general and ministers who remained in office despite poor performance. He believes positions are doled out based on political connections rather than qualifications. South Africa's Chapter 9 institutions which safeguard democracy have noted the extensive political interference in boards of state-owned companies. ANC deployment committees allegedly influence the selection of candidates based on partisan criteria. Malema has suggested introducing random selection of civil servants to address political favoritism. This would help detach public administration from vested interests. The EFF supports appointing skilled technocrats to key positions, free from party affiliations. Tackling graft and patronage networks is an ongoing struggle in South Africa. While the government has made efforts to stabilize the public sector wage bill and reduce exorbitant spending, more action is required to ensure appointments are made fairly.

Buhari Seeks to Reduce Nigeria's High Governance Costs

In Nigeria, President Muhammadu Buhari has similarly prioritized cutting the excessive costs of running government operations. Nigeria is Africa's biggest oil producer but has one of the largest numbers of people living in poverty globally. Many citizens feel the political elite live extravagantly on public funds while ordinary Nigerians suffer. Buhari stated in 2015, “The defeat of Boko Haram will be followed by the securing of Nigeria’s economic, social and political future for prosperous living in Nigeria.” He wanted Nigeria to spend more strategically on initiatives that benefit the population rather than enriching politicians and civil servants. As an austerity measure, Buhari reduced government ministries from 27 to 24. He has steadily decreased funding for official travel and eliminated “ghost workers” from the payroll system. In 2021, a review of government spending over the past decade was conducted. It found that cumulative actual expenditure exceeded budgetary provisions by over N10 trillion during the period. Much of the extra spending went towards recurrent items like personnel, overheads, and debt servicing. Meanwhile, there was significant underinvestment in capital projects essential for economic development. The government has resolved to correct this imbalance and budget more responsibly. Savings from lesser governance costs will be redirected towards infrastructure, healthcare access, digital services, and human capital development.

Criticism of Political Patronage in Nigeria

However, the opposition in Nigeria doesn't feel enough progress has been made on reducing waste and cronyism. They accuse Buhari of filling positions with allies from his All Progressives Congress (APC) party. For instance, the wife of the APC national leader was made Senator of Lagos without having won a primary election. The First Lady and Vice President were awarded honorary doctorate degrees from Buhari's alma mater within his first term. Critics point to the heads of state-owned enterprises appointed by Buhari. They allege these positions were awarded due to party affiliations and personal relationships rather than merit. Patronage networks are deeply embedded in Nigeria's political history. Certain lawmakers feel entitled to use their influence to secure favors for themselves, their allies, and their support bases. This undermines good governance, leads to resource misallocation, and discourages external investment. Greater transparency in public administration and decision making is required. Politicians need to prioritize national development over ethnic, religious and regional interests.

Progress and Challenges for South Africa and Nigeria

While Ramaphosa and Buhari have applied some corrective measures, patronage remains entrenched in both countries. Public sector bloat, misappropriation of funds, and graft hamper service delivery. State-owned enterprises rack up huge debts due to mismanagement and corruption. South Africa and Nigeria still rank in the lower half of Transparency International's Corruption Perceptions Index. Credit rating downgrades have made borrowing more expensive for both countries and constrained budgets further. Citizens are losing faith in the government's ability to act as an honest custodian of public resources. Greater accountability and transparency from political leaders is required. Ending decades of patronage will take time. Constitutional bodies like the public protector, auditor-general, and parliament have an important oversight role. The justice system needs to prosecute corrupt politicians more consistently. In the long run, decreasing governance costs and runaway spending will create fiscal space for development. Investing in infrastructure, healthcare, education and the green economy will bolster growth and employment. With visionary leadership, the abundant resources of these two countries could be leveraged for an African Renaissance. Tough reforms will be opposed by reactionary forces wishing to preserve the status quo. However, cleaning up governance is essential if South Africa and Nigeria hope to reach their economic potential.

The article summarizes issues of corruption and patronage affecting South Africa and Nigeria. It contrasts the efforts of Presidents Ramaphosa and Buhari to reduce State costs and tackle cronyism. Challenges for the two countries to strengthen public sector governance are also highlighted. Overall the intent is to provide a balanced overview of a complex topic for readers interested in African politics and economic development.

FAQs

What steps has Ramaphosa taken to reduce costs in South Africa?

Ramaphosa introduced cost-cutting measures for ministers and senior officials including capping vehicle prices, limiting air travel, and freezing salary increases. He has sought to reduce the public sector wage bill which accounts for over 30% of government spending.

How has Buhari tried to tackle governance costs in Nigeria?

Buhari has reduced the number of ministries, decreased funding for official travel, and eliminated ghost workers on the payroll. He aims to cut excessive recurrent spending and redirect funds towards capital projects that benefit citizens.

What are the challenges to ending patronage networks?

Patronage is deeply entrenched in the political systems of both countries. Constitutional oversight bodies, prosecuting corrupt politicians, and increasing transparency can help tackle cronyism over time.