President Cyril Ramaphosa has missed an opportunity to appoint a female governor to lead the South African Reserve Bank.
This was said by prominent economist Duma Gqubule after Ramaphosa on Friday announced the reappointment of central bank governor Lesetja Kganyago for another five years.
While Ramaphosa also stated that he was re-appointing Nomfundo Tshazibana and Dr Rashad Ismail Cassim as deputy governors for a period of five years with effect from August 1, he unveiled Dr Mampho Modise as the new deputy governor.
Modise is currently the deputy director-general for public finance division in the national Treasury.
“This is a patriarchal profession and I think he [Ramaphosa] has missed an opportunity to appoint a woman. I think Dr Modise was more than qualified to take over from Kganyago,” said Gqubule.
“Ramaphosa has also missed an opportunity to change the composition of the monetary policy committee and change the mandate of the central bank, and change the policies of the central bank,” he said.
Said Gqubule: “It is not good that Lesetja is getting another term. To create jobs and confront the unemployment crisis, we need a different composition of the monetary policy committee to include people who don’t work at the bank; people who’ll have empathy for ordinary South Africans. This governor has no empathy for the plight of ordinary South Africans.”
Gqubule said interest rate hikes in Kganyago’s first term were a result of supply side shocks – high fuel and electricity prices, among other things.
“He’s been a totally inflexible governor. The Reserve Bank cares only about debt. Other central banks in the world consider employment and economic growth. To continue with more of the same doesn’t take us anywhere as a country.
“Interest rates should not be used as a blunt tool for inflation increases,” stated Gqubule.
However, Business Unity of SA (Busa) and Black Business Council (BBC) praised the appointments.
BBC chief executive Kganki Matabane said: “We welcome Dr Mampho Modise’s appointment as the new deputy governor. She has the requisite experience and qualifications to take the SA Reserve Bank to new heights. We wish her well and will support her.”
Busa president Mxolisi Mgojo gave the appointments the thumbs up. “We think these are very good appointments because the current incumbents have done a great job at the Reserve Bank, and the new appointee is someone who has credibility.
“It just goes to show that the people with the right skills and have done a good job are being rewarded.”
Ramaphosa announced, after consultations with Finance Minister Enoch Godongwana and the board of directors of the South African Reserve Bank, that he was reappointing Kganyago.
“The re-appointment of governor Kganyago will ensure continuity and institutional stability at the Reserve Bank,” said Ramaphosa.
