The replacement of outgoing Finance Minister Nene by former SARB Governor and Minister of Labour Tito Mboweni is a confidence-building and reassuring appointment in present economic circumstances in SA. This is according to NWU economist,Professor Raymond Parsons.
“The key appointment of Mr Mboweni helps to ensure stability and consistency in policy direction, especially with the imminent Medium Term Budget Policy Statement on October 24. The vulnerable state of SA’s public finances will continue to require a firm hand at the National Treasury to implement fiscal consolidation.”
Professor Parsons says the latest change at the top of the National Treasury comes especially at a time when policy uncertainty remains in negative territory and when plans, policies and new initiatives to promote economic recovery and reform need high credibility.
“Reducing policy uncertainty and boosting investor confidence policy uncertainty are still high priorities. Mr Mboweni possesses the necessary integrity, skills-set and experience which can generate confidence in the markets, among investors and generally in the business community,” Professor Parsons adds.