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Give Gigaba time, says Reserve Bank governor

Central banker plays down policy impact of Gordhan’s firing.

South Africa’s newly appointed Finance Minister Malusi Gigaba should be given time to settle into the job before being judged on his performance, according to central bank Governor Lesetja Kganyago.

President Jacob Zuma’s decision to fire Pravin Gordhan as finance minister hasn’t affected ties between the central bank and the National Treasury, Kganyago said in an interview on Thursday in Washington.

The minister “needs to be given time to create the rapport with his team at the Treasury,” he said. “It’s a very competent team and hopefully he is able to hold on to that team.”

The remarks seek to ease concern that Gordhan’s dismissal will affect the country’s fiscal and economic policies. The cabinet reshuffle at the end of March prompted S&P Global Ratings and Fitch Ratings to cut South Africa’s credit rating to below investment grade, causing the rand to weaken against the dollar. While the currency has since trimmed its losses as investors sought higher emerging-market yields, the downgrades risk undermining investor confidence in Africa’s largest economy.

Policy intact

Gigaba plans to meet with Moody’s Investors Service during his current visit to the US to reassure the ratings company that fiscal policy won’t change, the minister said this week. Moody’s placed South Africa on review for a downgrade after Gordhan was fired. Treasury Director-General Lungisa Fuzile has since announced he will step down next month.



Kganyago, a former head of the Treasury, said he’s already held two “very cordial, very extensive” meetings with the finance minister and his deputy to discuss the challenges facing the economy.

“We have got a long relationship,” Kganyago said of Gigaba. “What you always need in a minister of finance, it’s not an economic guru, you need someone who knows the politics. The Treasury is endowed with a depth of talent, capable of putting together fiscal options.”

The rand on Thursday reached its strongest level against the dollar since the reshuffle after having erased its 10% gain for the year. It gained 0.1% to 13.1431 per dollar by 1:15pm in Johannesburg on Friday.

Kganyago and Gigaba are in charge of reviving an economy that the World Bank expects to expand less than 1 percent for the second year in a row. The central bank, however, is sticking to its forecast of a 1.2% expansion for now, the governor said.

“We still have a view of an economy that’s its improving but still in a low-growth trap,” he said. The Monetary Policy Committee will “take stock” of the latest economic developments when it meets again in May, he said.

The MPC has kept the benchmark interest rate unchanged since last March after raising it by 200 basis points to 7% over two years to curb consumer prices. Inflation eased in March to 6.1%, the lowest level in six months and just outside the upper end of the central bank’s target band.

The monetary policy stance “strikes the necessary balance between dealing with inflation and supporting the nascent economic recovery,” Kganyago said.


© 2017 Bloomberg


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Do an audit on Malusi Gigupta’s lifestyle and then tell me again that we need to give him time!??
He is tainted already – time will not heal.

Agree – AND Lifestyle audits should be conducted for all govt top echelon. Cronin called for this not only for politicians but also right down to Deputy DG level. Hopefully the opposition parties will take up the call – but the SACP have to drive it from within their alliance with the disgraced ANC. Or will Cronin’s call be just more hot air blown up the rear ends of the public?

Give him time for what exactly? To further trash our current very fragile economy while pushing CLUELESS’ zupta aligned objectives? Colgate (smiley) is totally out of his depth and the top 3 at the Finance Ministry will not be there to ensure proper oversight and management.

Point being we don’t have the luxury of time so may the no confidence vote succeed otherwise we are st*ffed.

The question should be “Should JZ be given more time?”. This is where the problem lies. Through his reckless behavior he has taken the entire country backwards. Gigaba is merely a result of actions taken elsewhere.

Gigglebaby will be judged by the”evil west” pretty soon.

Pion Gigaba is not the problem.

When you have repeat headaches you attend to both the symptoms and the cause – or do you propose we live with the headache? Smiley is totally inept, he has a track record of devastation behind him in far easier, less complex portfolios and in Dept Fin he will be a wrecking ball!!!

Get rid of him. There is no evidence if him running any department well. I recommend he be, appointed as either a Minister of Women Affairs or Minister of Fashion and Sensibilities.

This is the real world. If he is appointed as a minister then he should be jacked up enough to do the job. Giguta unfortunately has a record of failed appointments. He never sparked as deputy minister of Finance years ago and he brought in unconventional and unacceptable regulations as Home Affairs minister. Sorry Mr. Reserve bank Governor but South Africa does not have the benefit of time to allow a minister to play ion his toy box until he is ready to serve the country.

My initial comment to his appointment was “c’mon guys give him a chance he is the new kid on the block” – to which of course I had the normal buckets of excrement thrown at me. I personally was no fan of PG – he was in the drivers seat when debt got out of control. Anyway this guy knows how to dress,

So Robert, are you suggesting we invest in high end fashion instead of trying to save the economy?

Gigaba is the “mouse”(Pion) in the ANZ783 “rat race”(Zupta control government), all after the “free cheese in the mouse trap”(treasury), at the end Gigaba going to be ANZ scapegoat when the trap slams shut, and the rats run off with the cheese.

Kganyago definitely in the rat race, and waiting for his piece of “cheese” and the “OK” to open the doors for the “ZUPTA Bank of Africa”.

Unfortunately – “time is a luxury that SA don’t have”, “time wait for no one” and “time can not be turned back”, Mr Reserve Bank governor what we can do about time is, ” learn from it”, the mistakes “made last time”, lets not repeat them, but this time lets do it right, even if on African time, lets address the issues at hand and find timely solutions for the country.

Set a time for meetings with the country intellectual and logical economist and business people , who did their time building business and the economy with, who knows maybe, over time you could all learn from them and implement some time management strategies to improve government spending.

I think that time has run out for the ANZ783, because they wasted to much time enriching themselves, and forgot about SA’s time. So maybe, next time the people of this country vote, just hope ANZ783 don’t loose there time in the lime light of corruption, for I am sure the jails are going to be full of cadres doing time.

Sorry Mr Reserve Bank governor, the time is up, and please do not ask for extra time, as the end time whistle, will soon be upon ANZ783. We know you would all play for injury time, with friends Shaik & kie, but this time the image of the past ANC to the present time ANZ783 will have no time to unite and rectify their timely mistakes.

Till next time Mr Reserve Bank governor.

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