South African Reserve Bank (SARB) Governor Lesetja Kganyago has called on the country to shed its fear of risk-taking and focus on economic growth rather than prolonging debates over what development model to pursue, Bloomberg reported on Wednesday, 5 August.
Speaking at a public lecture at the University of South Africa in Pretoria on Tuesday, Kganyago argued that South Africans display a deep aversion to risk when it comes to the economy.
"South Africans like to gamble, but when it comes to economic growth, they are risk-averse. We would be much better off if we stopped gambling on sport and started gambling on growth," he said.
Kganyago acknowledged progress made through Operation Vulindlela, an initiative of President Cyril Ramaphosa's office designed to remove structural bottlenecks in areas such as energy, ports, and municipal governance. Nevertheless, he said progress had been too slow.
The governor attributed part of that delay to the institutional damage inflicted during the presidency of Jacob Zuma, a period in which public institutions were systematically used to serve private interests.
"It devastated the capacity of central government, it practically destroyed state-owned enterprises, and it continues to manifest in the municipal failures we see today," he said.
Kganyago argued that another key obstacle to growth is the excessive debate over development models, rather than the adoption of policies that would actually expand the economy.
South Africa's economy has grown at an average of less than 1% per year for more than a decade. "The main challenge we must set ourselves as a country is whether we actually want to grow. It sounds like an obvious answer, but it is not," he said.
The governor also criticised the tendency to constantly qualify economic growth. "We talk about growth with job creation, pro-poor growth, developmental growth, inclusive growth. We do not need growth with adjectives. We just need to grow," he said.
Kganyago concluded that South Africa must accept that economic growth entails taking risks. "Growth means trying solutions that involve risk. That is not always comfortable, especially for those who already hold power and wealth," he said.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/05/mundo/africa/africa-do-sul-governador-do-sarb-defende-mais-risco-para-acelerar-crescimento-economico/
