WINDHOEK: The late Tito Mboweni, former governor of the South African Reserve Bank, played a significant role in stabilizing Namibia’s economy through his monetary policies, according to Kazembire Zemburuka, spokesperson for the Bank of Namibia. Mboweni, who was the first black governor of the South African Reserve Bank, notably helped to contain inflation by pegging the Namibian dollar to the South African rand during his tenure starting in 1999.
According to Namibia News Digest, Zemburuka praised Mboweni’s efforts in an interaction with Nampa on Tuesday, highlighting his successful management of inflation rates within the target range of 3 to 6 percent. This achievement not only stabilized inflation in South Africa but also had a positive spillover effect on Namibia. “Governor Mboweni also boosted confidence in and support for the exchange rate peg arrangement in Namibia. It is good to be pegged to a well-managed currency where monetary policy is transparent, like the rand,” Zemburuka stated.
Further elab
orating on Mboweni’s contributions, Zemburuka noted his involvement in the Committee of Central Bank Governors in the Southern African Development Community (SADC). Under Mboweni’s leadership, the committee focused on enhancing the region’s financial systems, particularly through the development of payment, clearing, and settlement systems, as well as creating a comprehensive monetary and financial database.
Additionally, Mboweni was instrumental in the initiation of the Common Monetary Area (CMA) meetings among Namibia, Lesotho, and Eswatini, which improved communication and coordination between these nations’ central banks. ‘He was also a key driver of the modernization and adoption of a revised multilateral monetary agreement by the four CMA countries, which is serving our country well,’ Zemburuka added. This collaboration under Mboweni’s guidance has provided Namibia with a stable inflation rate and a steady exchange rate against the currency of its largest international trading partner.
Mboweni’s legac
y extends beyond his tenure as governor, having also served as South Africa’s former finance and labor minister.