South African central bank Governor Lesetja Kganyago expressed his approval of Finance Minister Enoch Godongwana’s reappointment in the newly formed coalition cabinet. Kganyago shared his sentiments in an interview at the European Central Bank Forum in Portugal, highlighting the continuity and stability that Godongwana’s leadership provides.
Following the recent elections in May, the formation of a government of national unity addressed concerns in the market regarding the coalition’s composition. This inclusive approach, involving the ruling African National Congress and other parties, aims to accelerate economic reforms and improve governance.
Despite ongoing risks such as geopolitical tensions and rising food and oil prices, the Reserve Bank maintains its commitment to achieving price stability. Kganyago expressed confidence in the bank’s inflation outlook, projecting a return to the target range by the first half of 2025.