South Africa's President Thabo Mbeki has dropped the head of a key Zulu-dominated party from his new cabinet.
Buthelezi (r) joined the cabinet under a deal to stop political violence
Mangosuthu Buthelezi has lost his job as home affairs minister after his Inkatha Freedom Party fought a bitter campaign against Mr Mbeki's ANC.
His appointment had been part of a deal which ended political violence in which thousands of people died in the 1990s.
The BBC Africa correspondent says the new line-up is a sign of the ANC's dominance of South Africa.
Other IFP officials have been given government jobs but the BBC's Hilary Andersson in Johannesburg says Mr Buthelezi's exclusion is a key decision.
Mr Mbeki has also given jobs to the leaders of two other parties - the successor to the ruling party under apartheid, the New National Party and the small left-wing Azanian People's Organisation.
But most of the out-going team kept their portfolios, including the key ones of finance, foreign affairs, health and defence.
Marthinus van Schalkwyk, New National Party, environmental affairs and tourism
Mosibudi Mangena, Azanian People's Organisation, science and technology
Naledi Pandor, education
Mangosuthu Buthelezi, IFP
Manto Tshabalala-Msimang, health
Trevor Manuel, finance
Nkosazana Dlamini-Zuma, foreign affairs
Mosiuoa Lekota, defence
Jacob Zuma, deputy president
Deputy President Jacob Zuma, hit by corruption allegations, also retained his position.
"The message the president is sending to the financial world is that roughly the same South African team they have been dealing with remains in place... It is an attempt to signal stability," said independent political analyst Steven Friedman.
In Tuesday's inauguration speech, Mr Mbeki promised his second and final term would focus on the millions of South Africans who remain in poverty.
The ANC gained 70% of the vote in the 14 April elections and polled the most votes in the province of KwaZulu-Natal for the first time.
Several people died in campaign violence between ANC and IFP supporters - a small fraction of the thousands killed in the province in the early 1990s.
Several people were killed in election clashes between the ANC and the IFP
The IFP had said it would contest the results in the courts but dropped its protest on Monday.
Health Minister Manto Tshabalala-Msimang kept her position in spite of the controversies around the government's record on dealing with Aids.
South Africa has more people with HIV than any other nation on earth, and the government has been heavily criticised for not providing Aids drugs on time, and for sending confusing messages to the public about the scale of the Aids problem.
Ms Tshabalala-Msimang has suggested that those with HIV should eat beetroot and garlic.
Mr Mbeki named five new women to his government team after saying on Tuesday: "We could not speak of genuine liberation without integrating within that the emancipation of women."
There are now 22 women in the 49-strong team of ministers and their deputies.
The inauguration ceremony and the following music concert were attended by tens of thousands of people in the capital Pretoria.
The concert was marred by a stampede in which some 15 people were injured, state television reports.
The inauguration coincided with celebrations for 27 April known as "Freedom Day", symbolising the end of white minority rule and the start of multi-racial democracy.