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Marcus hailed as remarkable leader

Johannesburg - Outgoing SA Reserve Bank (Sarb) governor Gill Marcus is a remarkable leader, the Black Management Forum (BMF) said on Monday.

"Her leadership is demonstrated by how she has managed to build an amazing pipeline of talent and a truly professional team. She is indeed a remarkable and attuned leader," the BMF said in a statement.

"When the history of this country is written, her name will loom large and the BMF wishes her all of the very best in her next phase of the struggle and her continued enormous contribution."

On Thursday, Marcus announced she would step down on November 8, at the end of her five-year term.

She made the announcement in Pretoria after a briefing on the monetary policy committee's repo rate decision.

"This is my last Monetary Policy Committee (MPC) meeting," Marcus said at the time.

READ: Rates announcement - as it happened

Marcus's stewardship of Sarb and decisions taken by her and her team during critical times had yet to be fully appreciated, the forum said.

"In all our engagements and interfaces with her and her team, she was always accessible, in time, on point, effective and efficient," it said.

"The BMF also applauds her for all that she has done to increase transparency of the Sarb."

On Thursday last week, President Jacob Zuma extended his gratitude to Marcus.

"We wish to thank the governor for her excellent service and leadership," Zuma said in a statement at the time.

"She has steered the bank during the difficult periods of the global economic and financial recession and ensured the achievement and maintenance of stability."

Zuma said government valued Marcus's contribution and wished her all the best in her future endeavours.

Zuma's office said he would announce the new governor in due course.

Widely respected

Emerging market economist Peter Attard Montalto, lamented Marcus' decision to leave "considering the achievements she has made in the last five years".

"She has increased the credibility of the Sarb, making it one of the most respected central banks in emerging markets, built up the skills base and management structure within the institution, shifted the statements both when she first came in and throughout her tenure to give a new level of transparency and detail on the risk outlook and particularly the international economic backdrop that has been particularly useful in this post-crisis world," said Montalto.

"She has also had a much more consensual and engaging style of leadership that was politically much more acceptable than that of the previous governor, but also more easily open and transparent with analysts for which we are grateful. She was widely respected by markets and investors."

The reasons for her standing down are complex, in Nomura's view.

"We had initially expected her term only to be renewed for a year or two, but that may not have been acceptable to either side," said Montalto.

"We think increasing political pressure, as well as her time in public life, may be part of the reason she did not want to continue."

Montalto also thinks within the ANC the race of senior economic leadership has been an increasing issue after the election, as well as resistance to rate hikes to some degree, but particularly resistance to Marcus' rhetoric on the problems South Africa faces.

"In this sense her final MPC press conference did not do her view justice. Since November of last year in particular, but in private for longer, she has increasingly been prepared to bang the table on the issues that needed addressing, the structural impediments within the economy, the low potential growth and the fact it is not the Sarb’s job to sort these out (and it does not have the tools)," explained Montalto.

"She was the first senior policymaker to say that blame for South Africa’s low growth cannot be shifted abroad."

Given his mix of struggle credentials and pedigree, Nomura thinks deputy governor Lesetja Kganyago is the front-runner, followed by fellow deputy Daniel Mminele.

READ: DG Kganyago touted as Marcus successor

"Both would represent policy continuity and a slight hawkish shift. We think either would be welcomed by the market and investors and are well known," said Montalto.

"An external appointment, however, could be risky and we struggle to think who could fill the shoes of the outgoing governor."  


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