{"id":852335,"date":"2026-02-26T16:00:00","date_gmt":"2026-02-26T14:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=852335"},"modified":"2026-02-26T15:26:46","modified_gmt":"2026-02-26T13:26:46","slug":"reserve-bank-on-the-hunt-for-a-new-director","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/852335\/reserve-bank-on-the-hunt-for-a-new-director\/","title":{"rendered":"Reserve Bank on the hunt for a new director"},"content":{"rendered":"\n

The South African Reserve Bank (SARB) is looking for a new director to join its board, with nominations open until 13 March 2026. <\/p>\n\n\n\n

The current term for a shareholder-appointed non-executive director of the SARB expires on 31 July 2026, when the next annual Ordinary General Meeting of the SARB takes place. <\/p>\n\n\n\n

“Any shareholder, director of the SARB or any member of the public may nominate persons to be considered as a candidate to serve as an elected non-executive director of the SARB,” said the central bank.<\/p>\n\n\n\n

“The SARB Act requires board members to have knowledge and skills in particular aspects of the economy.” <\/p>\n\n\n\n

The vacancy that will arise requires that nominees have skills and knowledge in commerce and the finance sector. <\/p>\n\n\n\n

The SARB said that nominations must be signed and returned by 16h00 on Friday, 13 March 2026.<\/p>\n\n\n\n

The South African Reserve Bank Act of 1989 provides for a board of 15 directors. This includes the Governor and three Deputy Governors, all appointed by the President.<\/p>\n\n\n\n

The Governor and Deputy Governors serve initial terms of 5 years. Upon reappointment, the terms may be less than five years. <\/p>\n\n\n\n

The terms of SARB Governor Lesetja Kganyago and his Deputies, Fundi Tshazibana, Rashad Cassim, and Mampho Modise, last until 2029. <\/p>\n\n\n\n

The Governor and the Deputy Governors manage the bank’s daily affairs on a full-time basis, and they are the only executive directors on the board.<\/p>\n\n\n\n

The President also appoints four other non-executive directors, after consultation with the Minister. <\/p>\n\n\n\n

The remaining seven directors are elected by shareholders at the Ordinary General Meeting. <\/p>\n\n\n\n

These elected non-executive directors need knowledge and skill in specific fields, with one expert required for each of agriculture, labour and mining. <\/p>\n\n\n\n

Two elected directors need expertise in industry, while the other two need expertise in commerce or finance, to which the nomination applies.<\/p>\n\n\n\n

“The board of Directors meets regularly to ensure that it fulfils its role of ensuring corporate governance of the Bank,” the SARB says. <\/p>\n\n\n\n

“The board ensures compliance with principles of good corporate governance by, among other things, adopting rules and determining policies for the sound accounting, administration and functioning of the Bank” <\/p>\n\n\n\n

To ensure this, the board utilises various committees and subcommittees, each chaired by a non-executive director. The nomination form is at the end of this article. <\/p>\n\n\n\n

Big changes for the SARB <\/h2>\n\n\n
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SARB Governor Lesetja Kganyago and outgoing Chief Economist Christoper Loewald<\/figcaption><\/figure><\/div>\n\n\n

The new director will help guide the SARB through a period of significant change, with key initiatives and staff changes.<\/p>\n\n\n\n

For instance, the bank recently convinced Finance Minister Enoch Godongwana to lower the inflation target to 3%. <\/p>\n\n\n\n

The SARB said that the lower inflation target will make the country more comparable to its peers and will eventually lead to lower interest rates. <\/p>\n\n\n\n

The SARB is also currently in an interest rate-cutting cycle, with the repo rate expected to see cumulative cuts of 50 basis points in 2026, bringing it to 6.25% by year-end. <\/p>\n\n\n\n

The repo rate is also expected to gain further attention, with the SARB looking to scrap the prime lending rate in favour of its policy rate. <\/p>\n\n\n\n

The prime lending rate is the rate at which banks lend in South Africa and has been set at 350 basis points above the repo rate since 2001. <\/p>\n\n\n\n

While prime is the interest rate currently tied to most loans, including mortgages and car loans, it is not an official policy rate, which the SARB wants to change. <\/p>\n\n\n\n

Moreover, in addition to the search for a new non-executive director, the SARB is also seeking a new Chief Economist to replace Christopher Loewald. <\/p>\n\n\n\n

Loewald is taking early retirement from the bank, which he joined in 2011. He is also a member of the Monetary Policy Committee. <\/p>\n\n\n\n