09/06/2017 08:13 SAST | Updated 09/06/2017 08:13 SAST

Mogajane Appointment A Relief To Business Community

The financial community has come out in support of the new director general of Treasury.

Dondo Mogajane worked as Pravin Gordhan's chief of staff for four years.
Ruvan Boshoff / The Times via Getty Images
Dondo Mogajane worked as Pravin Gordhan's chief of staff for four years.

The financial community has welcomed the appointment of Dondo Mogajane as director general of the Treasury, Business Day reported. Mogajane has worked at Treasury since 1999, including a four-year stint as former finance minister Pravin Gordhan's chief of staff.

He had been acting in the position since former director general Lungisa Fuzile's resignation in May, shortly after President Jacob Zuma removed Gordhan and his deputy, Mcebisi Jonas.

BNP Paribas Securities economist Jeff Schultz told Business Day:

"Mr Mogajane is a solid candidate and is widely considered to be a public servant with firm credentials and a strong moral compass. While his experience is not as vast as his predecessor's, the fact that this has been an internal appointment will at least continue to quell some fears that the appointment... could be politically motivated."

The Banking Association of South Africa said the appointment would boost local and international confidence in South Africa, and said it was a harbinger of policy continuity, Business Day reported.

A senior Treasury official told Business Day:

"There is a sense of relief that someone who has a good deal of experience in National Treasury has been appointed. The fact that he was chief of staff to Gordhan, where he would have experienced a strong interplay between political and administrative issues, means that he is knowledgeable about how the institution works."

Mogajana reportedly has good experience with the budget process as he had held the position of deputy director general of the public finance division since 2015.

Investec Asset Management's co-head of fixed income, Nazmeera Moola, told Business Day that while the appointment of Mogajane was "a really good first step", more would need to be done to restore the confidence of the business community.

This included the finalisation of the mining charter and the appointment of a permanent chief procurement officer in Treasury, she reportedly said.