Bank governor calls for pivotal role from politicians for economic integration

By Ofentse Mokae
02 September 2009

Out-going reserve bank Governor Tito Mboweni has called for the political leadership of the (SADC) countries to play a critical role in order for regional economic integration to be realized.

Mboweni said this while delivering the CR Swart Memorial Lecture at the University of the Free State.

Theme of the lecture was “Seeking greater political and economic integration in Southern Africa in challenging and turbulent financial times”.

Mboweni said the necessary macro-economic convergence accords must be put in place for regional integration to take place.

These accords, he said, should be supported by prudent fiscal policies, financial balances among SADC countries, and the implementation of policies which will minimize market distortions.

“In the crafting of the macro-economic policies of the region we have to ensure that market certainty is maintained,” he said.

Mobweni said together with other governors of central banks in the region they must first attain a free trade area in the region in order to achieve these objectives.

He said when the plans were outlined the idea was that in 2008 they should have achieved a free trade area.

However now they are behind in that regard, meaning that a free trade area has been formally and officially declared but the implementation thereof is behind schedule.

He concluded that there has to be a commitment by the political leadership in Southern Africa to do the basic things that need to be done for the development of the region.


Tito Mboweni will leave the Reserve Bank in November this year and pass the baton Gill Marcus who’s currently his deputy.