In a year often defined by political and economic turmoil, Daily Maverick columnist Stephen Grootes makes a compelling case for SARB Governor Lesetja Kganyago as Person of the Year. His rationale goes beyond typical financial stewardship, centering on a single, transformative policy shift: lowering South Africa’s official inflation target. This technical decision, Grootes argues, is a profound act of social justice that will tangibly ease the cost of living for millions, proving that sound institutional leadership can deliver direct, lasting benefits to the most vulnerable.
South Africa’s narrative is frequently one of insurmountable challenges. Yet, within its institutions, exceptional individuals continue to drive meaningful change. Few, however, can claim to have engineered a policy that will systematically reduce the price of bread, maize meal, and transport for every citizen—a decision whose positive impact will compound for generations. For this reason, Lesetja Kganyago, the steadfast Governor of the South African Reserve Bank (SARB), stands as a singular choice for Person of the Year.
It is the central banker’s creed to treat rampant inflation as a primal enemy. But true expertise lies not in dogmatic suppression, but in strategic calibration. Kganyago’s genius has been in understanding that the fight against inflation is not an end in itself, but a means to a more stable and equitable society.
The economic tightrope is perilous. As Japan’s ‘Lost Decades’ demonstrate, deflation or excessively low inflation can strangle growth, freeze wages, and increase debt burdens in real terms. Conversely, high inflation acts as a cruel regressive tax, eroding savings and hitting the poor hardest, as they spend a far larger portion of their income on basic necessities. The ‘right’ level of inflation, therefore, is a societal choice. For years, South Africa targeted a 3-6% band. Kganyago’s bold move was to shift the target midpoint lower, signaling a permanent commitment to greater price stability.
This landmark decision stands on the shoulders of giants. The late Tito Mboweni’s critical contribution, as Grootes notes, was his leadership in adopting inflation targeting in 2000. This framework tamed the hyperinflationary risks of the past and provided the necessary credibility for the SARB to operate independently. Kganyago’s move is the maturation of that project—using hard-won credibility to set a more ambitious standard for the public good.
The practical implications are vast. A lower, stable inflation target reduces uncertainty, allowing businesses to plan long-term investments that create jobs. It protects pensions and social grants from erosion. Most vitally, it increases the purchasing power of the rand in the pockets of low-income households. When the central bank succeeds, the price of a loaf of bread rises more slowly over time. This is not an abstract macroeconomic indicator; it is more food on the table.
In an era where institutional trust is frayed, Kganyago’s SARB has demonstrated that technical excellence, executed with courage and clarity, is one of the most powerful forms of social service. His Person of the Year accolade is a recognition that true leadership sometimes resides not in grand pronouncements, but in the quiet, determined adjustment of a dial that improves millions of lives for years to come.