Between the volatile rand and the transformation process, Timothy Thahane has had a busy first year as deputy governor, he tells
Madeleine Wackernagel
From a personal point of view, Timothy Thahane is very happy to be back in South Africa. Work, on the other hand, has been a bit more hectic, he says with a certain measure of understatement.
The deputy governor of the Reserve Bank, who took up his position in April last year, had to develop a very thick skin to cope with the rand’s volatility. But the most important lesson for him has been the need to focus on economic fundamentals and their management.
“We’ve seen a tremendous convergence between labour, business and the government in the past year, focusing on Gear [the growth, employment and redistribution strategy], which has been very important in shifting local and international perceptions about the future of macro- economic and financial policy management and outlook.
“The leadership has been driving that process in a much more targeted manner, working with all the stakeholders.”
Of which the Reserve Bank is one, and, says Thahane, the co-operation between the bank and the government is strong and productive.
“We take the medium-term perspective, focusing on fundamentals and appropriate policies, which we then share with the government so that it can take decisions knowing the monetary policy stance.”
With the appointment of James Cross to make up the full complement of three deputy governors, Thahane has been freed to concentrate on escalating the transformation process.
When we last discussed this aspect of his job in August, he was equally candid about the slow pace of change.
“Historically, South Africa has been characterised by racist and sexist divisions. The challenge is to transform these cultural biases, in line with the Constitution.
“But how do you turn staff attitudes around, making them into culturally sensitive people instantly?” he asks, disarmingly.
It would take nothing short of a miracle, I say.
“Exactly. Which is why it cannot be done overnight. But we have made great headway since the process was set in train in 1993. At that stage, the board and governors had set aside R5-million for affirmative action appointments and early retirement packages, but until my arrival, little progress had been made in using these funds.
“There are several aspects to implementing change. First, before you bring in more women or blacks, you must ensure that managers are fully committed to the process and the environment is conducive to supporting, retaining and developing them. Otherwise you end up with a situation where the previously disadvantaged are made to feel so uncomfortable, they leave in frustration and anger.
‘There is also no point in tokenism. No black person — and by that I mean every non-white — or woman wants to feel they have been appointed to a position merely for the sake of filling a quota. They want meaningful and challenging assignments.”
The Reserve Bank has accordingly not set a target for affirmative action appointments, but instead is aggressively seeking to train people to take over from those who opt for early retirement or to create a new position within a team to ensure skills transference.
The process has to be driven from the top down. Every senior manager must be involved, who in turn makes sure his deputies take up the baton. If a manager fails in this duty, he must, as in the private sector, expect sanctions, which may culminate in ‘termination for failure to meet organisational goals’. Transformation is every staff member’s responsibility.
It can be painful, admits Thahane, which is why teamwork is so important. “The process must not be seen in terms of the corporate ladder, with one in, one out, but as a mountain-climbing expedition, where everybody helps everybody else to get to the top.”
Thahane is also well aware of people’s fear of change. “There has been some resistance, but whether because of resistance for its own sake, or fear, is hard to tell. Naturally, people worry about their career prospects. That is why it is imperative to keep the channels of communication wide open.
“But the culture is changing because more and more people are enrolling in our workshops, which are designed to sensitise staff to cultural differences and make them more aware of the need for partnerships between the newcomers and the old guard.”
Some black personnel have quit, but talk of a flood of resignations owing to discrimination is wide of the mark, avows Thahane. There is no breakdown of people’s reasons for leaving as yet; in a year’s time the bank will have a clearer idea of whether money, career prospects or the work environment played the greatest role. Mostly, he is sure, people leave for career reasons.
The transformation process is still in its infancy. “It only really got into action last year. But with everybody watching us, the markets and the international community, not to mention the local press, we cannot afford to make mistakes. We need continuity; our performance has to be strong.”
Thahane emphasises “excellence with diversity” as the bank’s goal repeatedly during our conversation. So, is the bank’s new mantra working?
“As a public institution, we cannot shy away from our duty; we must show results. And that’s my job.”