SARB governor discusses inflation and economic growth in Soweto
During the engagement with the audience, Governor Kganyago said the economy was beginning to grow and was creating jobs, although not at the pace they would like to see
Governor Lesetja Kganyago of the South African Reserve Bank said before the outbreak of the war in the Middle East, South Africa was seeing a successive decline in petrol price, while inflation was becoming increasingly well-contained.
Kganyago shared these insights during the 2026 Soweto Talk to the SARB edition on April 22 at Jabulani, Soweto Theatre.
During the engagement with the audience, Kganyago said the economy was beginning to grow and was creating jobs, although not at the pace they would like to see.
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“Things were in a good space for us in South Africa up until the war broke out, and we do not know when this conflict will last,” he said.
Kganyago explained that the South African Reserve Bank views such developments as temporary shocks, and if they prove to be short-lived, there is no immediate need for intervention.
He said that, besides worrying about inflation, they also protect public deposits and ensure that institutions can meet their obligations.
One of the audience questions focused on the township economy, specifically whether there is intentional training to facilitate growth and development among township economic players, and why money is not ploughed back into townships.
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In response, deputy governor and CEO of the Prudential Authority, Fundi Tshazibana, said when people’s money is taken, whether through lending or investment, it must be managed responsibly.
She highlighted that if funds are lost due to bad investments, depositors may not recover their money.
“Banks do invest, but not all investments directly return to the township economy.
“However, banks and pension funds also lend to the government by buying its bonds, which helps fund its operations and address budget shortfalls. In this way, there is both direct and indirect support to the economy, including townships,” she said.
She stated that there are also opportunities through member-based institutions like cooperative financial organisations and banks, which can help communities pool resources and support local economic growth.
