Worst of the meltdown appears to be over – SA Reserve Bank

All indications are that the worst of the global economic meltdown is over and business should already be thinking in terms of recovery. This was the word from XP Guma, deputy governor of the South African Reserve Bank, at the second annual Doing Business with India conference in Sandton last week. Guma said it was important that recovery plans were sustainable and not short-lived in order to put South Africa back on a path of growth. “There is no doubt that the country was adversely affected, but not in our financial sector - rather in the real economy.” He said the country’s financial sector managed to escape the brunt of the recession for several reasons, including the precautionary measures taken over several years ahead of the meltdown, the know-yourclient- policy implemented across the sector as well as the adoption of several frameworks, which provided a solid background that ensured prudent risk management. Guma said South Africa’s infrastructure development would play a major role in increasing the capacity of the economy and told delegates that monetary authorities remained committed to such projects. “Despite these authorities being criticised, they are not inconsistent in creating a stable background for those who have to take financial decisions every day.