UPDATED: Meet Lesetja Kganyago – new SARB Governor

New SARB Governor Lesetja Khanyago
New SARB Governor Lesetja Kganyago

By Alec Hogg

SA President Jacob Zuma today announced that former DG of the Department of Finance, Lesetja Kganyago, who turns 49 tomorrow, has been appointed to succeed Gill Marcus as Governor of the SA Reserve Bank. He takes over on November 9.

Addressing the media this morning Kganyago said he knows many eyes will be on him and “I will not disappoint you.” Kganyago has been a Deputy Governor of the SARB for the past three years.

Kganyago referred to Section 224 of the Constitution which says the primary objective of the SARB is the protection of the currency in the interests of balanced and sustainable growth.

He added: “But it also says there shall be regular consultation between the SARB and the cabinet member responsible for financial matters (ie Finance Minister Nhlanhla Nene). I know where he lives, I know his telephone number – I will make sure there are regular consultations.” He described his predecessor Gill Marcus as “the best African Matriarch – she knows where the watering holes are.”

Outgoing Governor Marcus warmly embraced her successor after formalities, suggesting that he was also her choice. For Kganyago it is was something of a dream come true. After starting in banking as a clerk at FNB, his second job was at the SARB as a relatively junior dealer.

He left the SARB to join National Treasury where he rose rapidly to Director General, a position he occupied as a 39 year old in 2004. At the time of Kganyago’s return to the SARB in 2011, there was speculation he had been brought across specifically to succeed Marcus. In his announcement this morning, Zuma confirmed as much, saying his appointment of Kganyago in 2011 would “ensure a smooth transition as he is already part of the team.”

Marcus, who leaves on November 8th, says she will fully utilise the required six month “cooling off” period. Her advice to Kganyago: “Stamina, stamina, stamina – this is a marathon, not a sprint.” She says there should be little change in the approach of the SARB as the top team has a culture of continuously exchanging ideas and information “usually starting at 3am.”

Kganyago, who has an MSc from the University of London, a Masters in Economics from the London School of Economics and has attended courses at Harvard, also had secondments at the International Monetary Fund and the Central Bank of Switzerland.

Herewith President Jacob Zuma’s full address at this morning’s event:

In terms of the Constitution, the primary objective of the South African Reserve Bank is to protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic.

The Reserve Bank must perform its functions independently and without fear, favour or prejudice.

During the past five years, 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 would like to thank Ms Marcus for her sound leadership, commitment and dedication which has enabled the Bank to perform as well as it has done, under a difficult economic climate.

Ladies and gentlemen,

It is my pleasure today, to announce my decision to appoint Mr Lesetja Kganyago as Governor of the South African Reserve Bank with effect from the 9th of November 2014.

I appointed Mr Kganyago as Deputy Governor of the Reserve Bank in 2011, which should enable a smooth transition to his new position as he is already part of the team.

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.

The Governor-designate also brings the experience of having served in government at a top management level, as a former Director-General of the National Treasury from 2004. He had joined the Treasury in 1996.

During his tenure as Director-General, he successfully steered several public finance and financial market reforms.

As DG of the Treasury he led South Africa’s technical team to various meetings of G20 Ministers of Finance and Governors and the G20 Presidential Summits.

The Governor-designate 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.

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.

We have now begun the process of filling the vacancy of Deputy Governor that will be created and an announcement will be made in due course.

I thank you.

 

New Reserve Bank Governor Lesetja Kganyago makes remarks at a media briefing to report on the G-24 Ministers' Meeting during the IMF and World Bank's 2011 Spring Meetings, an annual gathering of the world's finance ministers and bank governors, in Washington, DC, April 14, 2011.          REUTERS/Mike Theiler
New Reserve Bank Governor Lesetja Kganyago makes remarks at a media briefing to report on the G-24 Ministers’ Meeting during the IMF and World Bank’s 2011 Spring Meetings, an annual gathering of the world’s finance ministers and bank governors, in Washington, DC, April 14, 2011. REUTERS/Mike Theiler

PROFILE OF MR LESETJA KGANYAGO

Career Overview

EXPERTISE: Macroeconomic Strategy, Financial Sector Regulation and Oversight, Public Sector Financial Management, Organizational Leadership and Transformation.

Mr Lesetja Kganyago has been Deputy Governor of the South African Reserve Bank since May 2011.  In this role he has been responsible for various areas ranging from Research, Financial Stability, Risk Management and Compliance; and the SARB College.  He is currently responsible for Bank Supervision, Financial Regulatory Reform (introducing the Twin-Peaks regulatory structure) and Financial Surveillance (responsible for the regulation of cross-border flows).

Mr Kganyago has wide-ranging experience in Macroeconomic Policy formulation, Financial Sector Policy, Public Finance, International Finance, Public Debt Management and Financial Markets.

During his tenure as Director-General of the National Treasury, Mr Kganyago successfully 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 STRIPS.  During the period a fundamental reform in management of the national debt portfolio was completed.

Mr Kganyago led South Africa’s technical team to various G-20 Ministers of Finance and Governors meetings and the Summits (including the inaugural Summit in 2008).  He is well respected in international fora for having chaired the Development Committee Deputies, chaired the G-20 Working Group on IMF governance reform and was also the vice-chair of the Financial Stability Board’s Standing Committee on Implementation Standards for a period of four years.

 

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