ContextKeynote address by Lesetja Kganyago, Governor of the South African Reserve Bank, at the 2026 Youth Leadership Summit, Johannesburg, 20 June 2026.
Why it mattersSouth Africa's Governor defends the new low inflation target and the central bank's independence before a young audience.
- Key economic decisions are made far from the people they affect.
- The central bank's constitutional protection was directly challenged.
- Critics underestimate the long-term cost of tolerating higher inflation.
- Keep a low 3% inflation target, which lowers borrowing costs.
- Accept that no policy delivers everything at once without trade-offs.
- Train leaders to use evidence and resist pressure when needed.
Read the speech summary
1. Four lessons from a career
Speaking to a youth leadership summit, Governor Lesetja Kganyago said policy decisions that shape lives are made in rooms young people never see, and he drew on four experiences. Treasury's case for expanding HIV treatment was first rejected, then, after a joint task-team report, the government launched the world's largest treatment programme. The Gauteng e-toll proposal, backed by analysis and feasibility work, met fierce opposition, and he disagreed with a respected priest, showing that leadership sometimes means saying no even to people one admires. The Public Protector's report threatened the Reserve Bank's mandate and independence, so he took it on review, rallied staff and prevailed. The new 3% inflation target was opposed on procedure after critics could not fight the analysis, and was won through explanation, credible research, legal mandate and a long relationship with the Finance Minister.
2. Leading under uncertainty, with sound analysis
Policy leadership means deciding when answers are incomplete: ask what problem is being solved, what evidence exists and what is unknown, and neither wait for certainty nor act carelessly. Good analysis starts by clarifying the problem, uses data that is questioned and put in context, keeps assumptions realistic, such as spending multipliers that ignore fiscal constraints, or the claim that tolerating higher inflation is costless when lenders charge more for expected inflation, weighs trade-offs, as with the green transition's costs to coal, and is honest about uncertainty.
3. Independence, credibility and humility
Leaders must withstand pressure and resist shaping analysis to please political principals. History shows the cost of lost independence: in the 1970s Arthur Burns's Fed loosened under political pressure, producing high inflation and low credibility, in an era of secrecy. Trust is built slowly and lost fast, and protecting the institution's credibility for tomorrow is part of the job, which is why central banking moved towards independence, transparency and accountability. Finally, collaboration and humility matter: he wants considered disagreement from his staff, seeks challenge, and advises young people to surround themselves with people who think differently. His closing point: real leadership has little to do with rank, assurance or applause; it means deciding wisely amid doubt, disciplining oneself with facts and holding firm to principle when pressed, while sturdy institutions come from people who reason carefully and behave honestly.