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The South African Chamber of Commerce and Industry (SACCI) appreciates the work done by the Reserve Bank in creating a stable financial services sector as outlined by Deputy Governor Daniel Mminele at the SACCI Business Breakfast this morning hosted by Liberty. The Business Breakfast forms an important part of SACCI's engagement with government towards strengthening relations and finding proper responses to policy questions.

Mr. Thiru Pillay, Group Executive, Liberty, welcomed guests to the breakfast and noted that Liberty supports the call for a financial sector which will continue to grow. "We appreciate the constructive engagement with government on building an ever stronger South African economy," Mr Pillay said. "Liberty looks forward to robust discussions with the Reserve Bank in order to craft regulation that ensures sustainable financial products and service offerings".

Mr. Mminele spoke broadly on international and domestic trends in monetary policy and potential risks to South Africa's price stability. "There is evidence of self-sustaining recoveries in some of the major economies. It is now accepted that as growth recovers, policy makers in the advanced countries will start to unwind the exceptional monetary accommodation that is currently in place in these countries,” said Mr. Mminele. This trend will ultimately result in higher global interest rates and should impact capital flows. Mr. Mminele touched on South Africa's strained industrial relations and its impact on economic growth. “The South African economy can ill-afford a fractured labour relations environment. Both business and labour, with government facilitation, have a vital role to play to improve the labour relations environment in South Africa.”

Mr. Mninele emphasised that the process towards addressing the challenges faced by African Bank is well under way and stressed that the bank will continue to operate as a going concern. “The leadership and commitment shown by South African commercial banks and the PIC in underwriting the capital raising for the envisaged ‘good bank’ bears testimony to 10 the strong underpinnings of our banking and financial system.”

SACCI is proud to have been part of this important engagement and looks forward to further discussions with the Reserve Bank. The SACCI Annual Convention on 22 and 23 October will presents similar issues like international monetary policy and the likely impact on the South African business environment please go to convention website for more information.