/ 25 March 2011

New Reserve Bank deputy governor welcomed

The markets will welcome the appointment on Friday of Lesetja Kganyago as new deputy governor of the South African Reserve Bank, an economist said.

The markets will welcome the appointment on Friday of Lesetja Kganyago as new deputy governor of the South African Reserve Bank (SARB), an economist said.

“The announcement that the long-standing, well-respected director general of South Africa’s Treasury, Lesetja Kganyago, will be appointed deputy governor of the SARB will be interpreted positively by markets,” said Razia Khan, regional head of research in Africa of Standard Chartered Bank.

“Kganyago is well known to investors and has commanded a great deal of respect for achievements during his time at the Treasury,” she said in a statement.

“He is seen as a key figure in the reforms implemented in South Africa over the years, is well-attuned to market thinking, and has played a key role in establishing South Africa’s reputation for sound fiscal policy.”

She said “perhaps most importantly” he had considerable standing in the African National Congress and was seen to be in touch with grassroots problems.

“This should go some way towards strengthening the public accountability that the SARB as an independent institution has been trying to foster.”

She said there was still a question about who would take over from him at the Treasury.

His appointment was “unlikely to result in any significant change in policy stance at the SARB”.

President Jacob Zuma announced Kganyago’s appointment on Friday, saying he was highly qualified.

“Kganyago has extensive experience in financial markets and is highly regarded for his extensive knowledge and expertise of the South African and global financial system,” Zuma said.

Kganyago was present at the announcement, together with Reserve Bank Governor Gill Marcus and Finance Minister Pravin Gordhan. — Sapa