He would replace Nkosiphendule Kholisile, who was recently killed in a car accident.
"Xayiya would take office immediately," Mokonyane said.
He was previously chairman of the Road and Transport sub-committee in the Gauteng legislature and is currently a member of the Oversight Committee on the Office of the Premier in the Legislature (OCPOL).
The African National Congress in Gauteng welcomed his appointment.
"He has a lot to offer both in terms of his experience and commitment. He is hard working and dedicated cadre of the movement," spokesman Dumisa Ntuli said in a statement.
The Democratic Alliance described the appointment as a puzzling choice.
"He does not have a strong economics background, unlike his predecessor Nkosiphendule Kolisile," DA Gauteng leader Jack Bloom said in statement.
"There are better qualified people in the ANC for this position, so it is a political appointment dictated by the balance of power between Mokonyane and Gauteng ANC chairperson Paul Mashatile," he said.
Bloom said Xayiya had a daunting task ahead of him as the department's job creation efforts had mostly failed.
Source: Sapa via I-Net Bridge
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