CAPE TOWN – The JSE on Wednesday welcomed the appointment of former Reserve Bank Governor Tito Mboweni as the Minister of Finance saying it was looking forward to re-establishing relations.
The announcement saw the rand trade favourably against the dollar and boosted markets across the board.
JSE chief executive Nicky Newton-King said: “It is critical that the economy is stabilised to attract both local and foreign investors. We hope that this announcement will influence Friday’s rating agency’s decision.”
The move to appoint Mboweni was described as a decisive step on the part of President Cyril Ramaphosa to deal with a situation threatening to become a crisis by NKC Research.
NKC analyst Gary van Staden said Mboweni was an inspired choice to replace erstwhile minister Nhlanhla Nene and the decisiveness of the move amid market uncertainty was widely welcomed.
“The former Reserve Bank governor can be a difficult personality, but his skillset and deep understanding of financial markets are likely to see him embrace a market-orientated policy framework with a no-nonsense attitude and dedication to economic growth and social development.
“We expect the appointment to have a positive impact on the credibility of the Ramaphosa administration,” said van Staden.
Financial services provider Ithala also joined the party welcoming Mboweni saying in steering the country towards an inclusive economy where the plight of the poor will be prioritised, Ithala is mindful of Mboweni’s previously stated call for government to “consider buying one of the country’s banks to boost access to finance for citizens and businesses”.
Ithala chief executive Danny Zandamela said: “As ex-governor of the Reserve Bank, Mboweni is a familiar figure to Ithala. His vast financial sector expertise is sure to win the confidence of financial markets, businesses and investors whilst also tackling the socio-economic ills fuelled by slow economic growth.”