Tito Mboweni, South Africa’s first black central bank chief, dies aged 65

(Bloomberg) — Tito Mboweni, who served as the first black governor of South Africa’s central bank and later as finance minister and was praised for keeping inflation and public spending under control, has died. He was 65.

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The former governor died after a “short illness,” the South African presidency said late Saturday. He died surrounded by his loved ones in a hospital in Johannesburg, Mboweni’s family said in a statement.

Mboweni was labor minister in the cabinet appointed by President Nelson Mandela after the end of apartheid in 1994. He was appointed governor of the central bank in 1999, a position he held for a decade, and served as finance minister from October 2018 to August 2021.

“We have lost a leader and compatriot who served our nation as an activist, an economic policy innovator and a champion of labor rights,” President Cyril Ramaphosa said. “As governor and treasurer, he placed great emphasis on fiscal discipline and economic transformation.”

Mboweni was born on March 16, 1959 in the town of Tzaneen in northern South Africa. During apartheid he went into exile and trained as an economist.

According to the central bank, he received a BA in economics and political science from the National University of Lesotho in 1985. He then earned an MA in development economics from the University of East Anglia in England in 1987.

Mboweni served as labor minister for four years. During this time, he oversaw the implementation of a number of new laws protecting workers’ rights.

As central bank governor, Mboweni fought to protect the institution’s independence amid criticism of the impact of the strong rand on the competitiveness of South Africa’s exports.

Conservative politics

Mboweni gained a reputation for being conservative in monetary policy. He was a strong supporter of the inflation target, which was introduced a year after he took office and was rejected by the unions.

According to the African National Congress, the political party that ruled South Africa from 1994 until losing its parliamentary majority in that year’s elections, Mboweni was instrumental in maintaining price stability in a “fragile post-apartheid economy.” He was a member of the ANC’s National Executive Committee, its highest decision-making body.

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His other successes at the central bank included rebuilding South Africa’s foreign exchange reserves from less than $10 billion to almost $40 billion.

“He was a passionate central banker and played a key role in building the SARB into the professional, formidable and purposeful organization it is today,” the central bank said on Sunday.

After his time at the bank, Mboweni moved into the private sector as a consultant in South Africa for Goldman Sachs Group Inc. He was also chairman of AngloGold Ashanti Ltd., formerly the world’s largest gold producer, and sat on the boards of other companies.

Mboweni was appointed finance minister during Ramaphosa’s first term, as the president vowed to fight corruption and restore investor confidence eroded by nine scandal-filled years in government under his predecessor Jacob Zuma.

“His contributions in this area helped steer South Africa through economic turmoil and he was widely respected for this both locally and internationally,” the ANC said. “Although his term was short, he led the country’s economic policy during a critical transition period following the departure of his predecessor.”

Mboweni’s family said they would release more details about his death in the coming days.

– With support from S’thembile Cele.

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