South Africa 10.10.2018 09:28 am

Mboweni appointment will calm markets – ACDP

 Former Reserve Bank Governor Tito Mboweni. (File photo by Gallo Images / Foto24 / Lertao Maduna)

Former Reserve Bank Governor Tito Mboweni. (File photo by Gallo Images / Foto24 / Lertao Maduna)

The party believes the new minister will adhere to strict fiscal consolidation measures required to stabilise state finances and inspire investor confidence in the economy.

The appointment of Tito Mboweni as South Africa’s new finance minister will calm markets and provide confidence to foreign investors given his experience as a former cabinet minister and central bank governor, the African Christian Democratic Party (ACDP) said.

President Cyril Ramaphosa on Tuesday appointed Mboweni to replace Nhlanhla Nene who resigned over his meetings with the controversial Gupta family at the centre of a probe into state capture. Nene denied helping to further the Guptas interests but conceded he should have been more upfront about his encounters with them.

“We believe that Minister Mboweni’s appointment will be well-received by investors and the markets, given his extensive experience as governor of the South African Reserve Bank, where he championed inflation targeting, and opposed populist decision-making,” said the ACDP.

“He will no doubt adhere to strict fiscal consolidation measures required to stabilise state finances and inspire investor confidence in the economy,” the party added, noting that the rand had strengthened after Mboweni’s appointment.

The currency, which had breached 15.00 against the U.S. dollar due to both domestic concerns and the global impact of trade wars, was on firmer ground at 14.54 early on Wednesday.

The ACDP urged Ramaphosa to follow through on his commitment to good and clean governance by considering removing other “far more contentious ministers”.

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