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Dondo Mogajane’s appointment as National Treasury director-general was a sign of institutional stability at the Treasury and bodes well for local and international confidence in the country, the Banking Association South Africa (Basa) said yesterday.

Mogajane, a veteran civil servant who has been with the Treasury since 1999, has been acting in the position since the departure of former director-general, Lungisa Fuzile, who resigned shortly after the axing of former Finance Minister Pravin Gordhan and his deputy, Mcebisi Jonas, in March.

“The appointment of Mr Mogajane is a step in the right direction by the cabinet. He has almost two decades of experience at the National Treasury, and is a highly capable finance professional. We regard his appointment as a harbinger of the policy continuity promised by the Minister of Finance,” Basa managing director, Cas Coovadia, said yesterday.

Coovadia said Mogajane represented the Treasury in the CEO Initiative, which was established in 2016 to avert a downgrade in the country’s sovereign credit rating.

“This quick, decisive and prudent appointment will contribute towards local and international investors looking favourably at South Africa. We look forward to working with (Mogajane) in his new role, and the rest of the National Treasury team to place our economy on an inclusive growth path,” said Coovadia.

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Basa was among organisations which voiced their displeasure with the March 31 cabinet changes, which included the removal of Gordhan and Jonas. At the time, the organisation said President Jacob Zuma’s actions had put the country into turmoil and questioned the motives behind the changes.

Business Unity South Africa vice-president Martin Kingston said the appointment was a positive development “and removes uncertainty by endorsing the appointment of a well-known and respected individual to a critical position".

He said Mogajane’s priority should be to demonstrate continuity with respect to policy formulation and implementation, inclusive growth and the role of the state to maintain a firm grip on borrowings, the fiscal situation, improving governance and accountability at state-owned companies. He should also harness the involvement of business and other social partners.

The Treasury yesterday said that since joining the department, Mogajane had worked in various areas within the department, including among others, intergovernmental relations, provincial budget analysis and international economic relations.

Between 2007 and 2010, Mogajane represented South Africa at the executive board of the World Bank as a senior adviser for Africa Group 1 countries.

Between 2010 and May 2014 Mogajane served as the chief of staff in the Ministry of Finance and later as the acting chief operating officer from May 2014 until May 2015. He was later appointed deputy director-general responsible for the public finance division at the National Treasury.

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