ContextAddress by Lesetja Kganyago, Governor of the South African Reserve Bank, at the Kgalema Motlanthe Foundation Drakensberg Inclusive Growth Forum, Drakensberg, 10 October 2025.
Why it mattersSouth Africa's Governor explains how the country absorbs tariffs and rand swings without losing control of inflation.
Problems raised
Tariffs are a new challenge for South Africa.
The rand is volatile.
Inflation once ran far above US levels.
Solutions proposed
Rely on low foreign-currency debt to absorb rand swings.
Build credibility on the inflation target.
Limit pass-through of the exchange rate to prices.
