Emeka Chiakwelu, Principal policy strategist at Afripol, and its management praises Gill Marcus on her new assignment and commended President Jacob Zuma for making it possible.
The deputy governor of South Africa Reserve Bank, Gill Marcus was appointed the new governor of South African apex bank to replace the retiring Tito Mboweni. This appointment assured the global financial market that President Jacob Zuma who made the appointment is still committed to free market and financial discipline of his predecessor Thabo Mbeki.
The outgoing governor of South Africa Reserve Bank, Tito Mboweni has the reputation of being fiscal conservative with a prudence in the application of well thought monetary policy to control inflation and maintaining the value of rand. Under the watchful eye of Mboweni the South African currency rand have continue to maintain its strong value but not too strong to dwindle export of home made goods. But lately "rand has been the top-performing emerging-markets currency since March 9, right around the time when the U.S. equity markets bottomed. The rand has soared 29% against the dollar over that period, buoyed by rising commodity prices and a general improvement in appetite for riskier assets."
South Africa economy is quite ebullient with its relentless dominance of the entire African economic and financial landscape – the largest economy in Africa and the only African country that made it to G20. A good thing coming from South Africa is its continue investments in the continent. South African investors are investing heavily in West Africa particularly in Nigeria and neighboring countries where they are dominating telecommunication industry. Many of construction contracts in buildings and roads in many African countries are dominated by South African firms.
With this appointed of Gill Marcus there is an assurance of continuity in the financial efficiency and commitment to rand value and tackling of inflation; therefore the financial community will continue to feel good about putting their resources in South African economy. With this appointment the economic vision of the President Zuma is gradually emerging and we are beginning to realize that he is not committed to the extreme left wing of his party but is ready to allow free market to thrive without government overbearing and restive tinkering.
Looking at the background of Gill Marcus, she has the education and experience to efficiently carry out her responsibilities as the apex banker of South Africa. Until this "Marcus was Mboweni’s deputy at the central bank from 1999 to 2004 and before that was deputy minister of finance. She also has served as an ANC spokeswoman. Sunday’s appointment marked a return to government for her after a stint as chairwoman of South Africa’s Absa bank." Marcus will enjoy the support of ANC because she is well respected in the financial circle for her devotion to the party and well being of the country.
The retiring Mboweni built a bulwark against inflation by maintaining high interest rates and we at Afripol organization www.afripol.org do not wish that the incoming Gill Marcus to maintain high interest rates. The keeping of high interest rates do not augur well for growth of small and viable businesses in South Africa. High interests make it difficult for a flourishing economic growth in the country and for upcoming new capitalist it can be detrimental in obtaining and paying back loans from financial institutions.
Emeka Chiakwelu is the Principal Policy Strategist at Afripol Organization.
Africa Political and Economic Strategic Center (Afripol) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa. www.afripol.org