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R 241525Z JUL 09
FM AMEMBASSY PRETORIA
TO SECSTATE WASHDC 9145
CIMS NTDB WASHDC
INFO SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
DEPT OF COMMERCE WASHINGTON DC
DEPARTMENT OF TREASURY WASHDC

UNCLAS PRETORIA 001499 
 
 
DEPT FOR AF/S; AF/EPS; EB/TPP 
USDOC FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND 
TREASURY FOR DAN PETERS 
DEPT PASS USTR FOR WILLIAM JACKSON 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV EMIN ENRG ETRD BEXP KTDB SF
SUBJECT: GILL MARCUS APPOINTED SOUTH AFRICAN RESERVE BANK GOVERNOR 
 
¶1. Summary.  South African President Jacob Zuma announced the 
appointment of ABSA Group Non-Executive Chairperson Gill Marcus as 
South African Reserve Bank (SARB) Governor on July 19, 2009. Born in 
1949 to African National Congress (ANC) activist parents, Marcus 
went into exile in 1970 and joined the ANC's Department of 
Information in London.  She returned from exile in 1990 and was 
elected to the ANC's National Executive Committee in 1991, and to 
Parliament in 1994.  Marcus served as Deputy Finance Minister from 
1996 to 1999, and as Deputy SARB Governor from 1999 to 2004.  Since 
2004, she has held various senior positions in the private sector. 
Politicians and the business community welcomed her appointment. 
End Summary. 
 
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Marcus Appointed SARB Governor 
------------------------------ 
 
¶2. (U) South African President Jacob Zuma announced on July 19 that 
Gill Marcus will take over from Tito Mboweni as Governor of the 
South African Reserve Bank (SARB).  Mboweni, whose current contract 
expires on August 8 after two five-year terms, will remain at the 
helm of SARB until Marcus takes over on November 9, 2009.  Marcus 
will be the first woman to hold the position of SARB Governor.  Her 
appointment came after months of speculation that Mboweni's contract 
would not be renewed after public rows with trade union leaders over 
monetary policy.  President Zuma said at the press conference that 
Marcus had "qualities of proven leadership, sound judgment and 
integrity." He added, "She will prove a worthy successor to Mr. 
Mboweni". 
 
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Background 
---------- 
 
¶3. (U) Marcus was born in Johannesburg in 1949 to ANC activist 
parents.  In 1970, while studying for a business degree at Wits 
University, she left the country with her family.  Marcus switched 
majors to industrial psychology and finished her degree in London, 
while doing volunteer work for the ANC's London office.  From 1975 
she worked full time for the ANC's Department of Information in 
London, where she was the editor of the ANC's weekly bulletin, which 
was distributed at the United Nations and to parliamentarians in 
Britain and Europe.  According to Trevor Manuel's biographer Pippa 
Green, Marcus became a significant voice of the ANC in London, so 
much so that undercover South African police agents planted a bomb 
in her office in 1982.  The bomb went off, but Marcus was not at the 
office that day. 
 
¶4. (U) In 1990, Marcus returned from exile to set up the ANC's 
information department.  She was elected to the ANC's National 
Executive Committee in 1991, and served on the national working 
committee.  Before the 1994 elections, she trained ANC media workers 
and voter educators, and accompanied Nelson Mandela on his election 
campaign in the provinces.  Marcus played a leading role in 
determining media policies for the ANC in the run up to the 1994 
elections. 
 
¶5. (U) After the 1994 election, she was chosen for parliament and 
quickly established a reputation for efficiency as chairperson of 
the parliamentary joint finance committee.  She held this position 
from June 1994 until June 1996, when she was appointed Deputy 
Minister of Finance.  As Deputy Minister from 1996 to 1999, she 
worked closely with Finance Minister Trevor Manuel.  She served as 
SARB's Deputy Governor from 1999 to 2004.  Since 2004, Marcus has 
served as Director of the Gordon Institute of Business Science, 
Non-Executive Director of Bidvest, Executive Chairperson of Western 
Areas (a mining company), and Non-Executive Director of Gold Fields 
(also a mining company).  She has held her current position as ABSA 
Group Non-Executive Chairperson since 2007. 
 
----------------------- 
Monetary Policy Changes 
----------------------- 
 
¶6. (SBU) Marcus side-stepped questions by journalists on the future 
of inflation targeting, saying only that "down the line we will have 
many debates."  An ABSA economist told Embassy Economic Specialist 
that Marcus is "not likely to favor any changes to inflation 
targeting, given her involvement in the debates around the current 
policy during her tenure as Deputy Finance Minister and Deputy SARB 
Governor."  In a media briefing after the announcement of Marcus's 
appointment, ANC Secretary General Gwede Mantashe said that Marcus 
will implement the policies she finds in place at the SARB. 
Mantashe mentioned that while "any change presents an opportunity," 
policy was not a function of an individual.  He stressed that policy 
changes, if any, would take a long time and that "individual tastes" 
would not be a factor.  [Note: The SARB receives its mandate from 
the Finance Ministry and is, therefore, only tasked with policy 
implementation.  The Finance Ministry will have the final word on 
inflation-targeting.  End Note] 
 
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Local Reaction 
-------------- 
 
¶7. (SBU) The local reaction to Marcus' appointment has been 
overwhelmingly positive, with business groups as well as the 
Congress of South African Trade Unions (COSATU) and the South 
African Communist Party (SACP) all applauding the appointment. 
Economic analysts were equally enthusiastic.  A Democratic Alliance 
economist told Deputy Economic Counselor, "Marcus has the potential 
to have a very good impact on the image of the SARB."  [A reference 
to Mboweni's reputation for high-handedness.]  In a note for 
investors, Standard Bank said that Marcus would "reconcile multiple 
stakeholders" with different interests.  COSATU said it hoped that 
Marcus' appointment "will mark a change of policy by the SARB to one 
more geared to economic growth rather than a rigid obsession with 
inflation targeting."  Investec Asset Management Strategist Michael 
Power wrote in a press article, "Marcus will bring to the Pretoria 
table during her governorship a willingness to entertain new ideas." 
 ANC spokeswoman Jessie Duarte told journalists that Marcus enjoyed 
the confidence of all sectors, especially the financial 
institutions.  There is general agreement that Marcus is 
intelligent, hardworking and honest. 
 
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Comment 
------- 
 
¶8. (SBU) Zuma made a shrewd move by appointing Marcus.  Unions are 
pleased that Mboweni will leave SARB, while business can reasonably 
expect that few policies will change under Marcus.  Zuma's selection 
of Marcus was a choice for competence and continuity and shows that 
the ANC understand the importance of monetary policy.  Given 
Mantashe's comments on monetary policy, as well as Marcus' 
appointment, post does not expect any significant changes to 
monetary policy in the near term.