Cabinet has approved the appointment of Duncan Pieterse as new Director-General in the National Treasury.
Pieterse had served as Deputy Director-General of economic policy in the last few years.
The position of Director-General had not been filled since Dondo Mogajane left in June last year.
Ismail Momoniat, who is the Deputy Director-General, was appointed as acting Director-General when Mogajane left.
Minister in the Presidency Khumbudzo Ntshavheni confirmed on Thursday that Pieterse has been appointed the new DG in the National Treasury.
There has been speculation this week that Pieterse would be taking over as head of Treasury.
Finance Minister Enoch Godongwana welcomed the appointment of Pieterse.
He said he has been appointed to the position for five years and will provide strategic direction to the department.
He has worked in the national treasury for years.
The appointment comes at the time Finance Minister Enoch Godongwana was expected to table the Medium Term Budget Policy Statement in the next three months.
The treasury has for the last few years been trying to get the economy going, but the country has faced a number of domestic and external challenges.
The South African economy has not grown above 5% in the last few years.
The last time it grew above 5% was before the global financial crisis in 2008.
Statistics South Africa has also released figures showing an increasing in the number of young people who are unemployed.
The government has been trying to get businesses to invest in the economy.
President Cyril Ramaphosa recently met with the CEOs of more than 115 major companies in the country where they pledged to help government to fight crime and corruption and open the rail network that has been affected by vandalism and destruction due to cable theft.