Lesetja Kganyago appointed new SA Reserve Bank governor

Lesetja Kganyago will take over as the new South African Reserve Bank (Sarb) governor when Gill Marcus’s current five-year term ends on 8 November 2014.

Lesetja Kganyago, became governor of South Africa Reserve Bank after Gill Marcus. (Image: Sarb)

Brand South Africa reporter

Kganyago is currently the deputy Sarb governor, having served in the position since 16 May 2011. Accepting his appointment at the Union Buildings in Pretoria on Monday, 6 October, Kganyago said he is humbled and honoured that the leadership of South Africa has seen him suitable for the position. “I shall not disappoint,’ he said.

Announcing Kganyago’s appointment, President Jacob Zuma said Kganyago will assume his duties as governor of Sarb with effect from 9 November 2014.

Kganyago’s appointment as governor is not incidental, it will appear. Zuma said he appointed Kganyago as deputy governor of Sarb in 2011, a move that would enable a smooth transition to his new position.

“The Governor-designate has wide-ranging experience in financial markets. He is highly regarded for his extensive knowledge and expertise of the South African and global financial systems.

“Incidentally, the Governor-designate worked at the Reserve Bank as Assistant Manager for Investment Dealing in 1994, which gave him an insight into what happens at the lower levels of the institution,’ said Zuma.

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 having served as director-general of National Treasury.

In his role as deputy governor, Kganyago is responsible for various areas ranging from research, financial stability, risk management and compliance; and the Sarb College. Other responsibilities include bank supervision, financial regulatory reform and financial surveillance.

In addition, Kganyago has wide-ranging experience in macroeconomic policy formulation, financial sector policy, public finance, international finance, public debt management and financial markets.

Having worked under Marcus, Kganyago offered stability of monetary policy. (Image: Sarb)

During his tenure as director-general of the National Treasury, Kganyago steered several public finance and financial market reforms. He played a lead role in the fundamental reform of the micro-structure of domestic bond markets, including reforms to the auction system and introduction of new financial instruments such as inflation- linked bonds, buy-backs, switches and Separate Trading of Registered Interest and Principal of Securities (STRIPS). During the period a fundamental reform in management of the national debt portfolio was completed.

Zuma said Kganyago holds, among other qualifications, a Master of Science degree in Development Economics from the University of London’s School of Oriental and African Studies, and a Bachelor of Commerce degree in Accounting and Economics from the University of South Africa.

“Among various positions earlier in his career, Mr Kganyago served as economics coordinator and accountant for the African National Congress and as an accountant for COSATU.’

Turning to the performance of Sarb during the past five years, Zuma said the bank performed its functions in the context of a tough global financial crisis and challenging domestic economic factors.

“The institution registered excellent performance during this difficult period, under the capable leadership of the Board, the Governor, Ms Gill Marcus and the Deputy Governors.

“As you are aware, Ms Marcus will leave the Bank at the end of her term on the 8th of November 2014.

“I wish Mr Kganyago all the best in this new responsibility. I have no doubt that he will acquit himself as proficiently in this new role as he has previously done in other strategic positions,’ he said.

The deputy governor gap left by Kganyago will be filled in due course, concluded Zuma.

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