Asked directly about whether he spoke to his colleague in Zimbabwe, central bank governor Gideon Gono, Mboweni said Gono did indeed phone him. “I think my colleague in Zimbabwe is in a very difficult situation. He has tried to maintain the highest standards of a central bank. He has indicated from time to time where he disagrees with the government. It has been very brave on his part.”
Appearing to back Gono’s warnings about recent legislation that will take majority stakes in Zimbabwean companies out of foreign investors’ hands, Mboweni said it was critical for citizens of any country to tackle legislatures if they did not pass good laws. It was too late to complain once the legislation was in place. – Own correspondent
12.10.2007
14:17
Governor defends property rights
SA Reserve Bank governor Tito Mboweni believes there was nothing worse for an economy than when property is taken away from an investor. Speaking in Cape Town at the weekend in a thinly veiled criticism of Zimbabwe land grabs, Mboweni said: "If people are convinced that they have got their private property rights secured, they will invest because they know that their investment will not be taken away. We know that if there is a disciplined fiscal policy regime, investors will respect it."