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Mernat Mafirakurewa Business Editor
RESERVE Bank of Zimbabwe’s incoming governor Dr John Mangudya has his work cut out as expectations are high for him to restore the waning banking sector confidence and provide a solid platform for economic growth. Inspite of the fact that Mangudya, who is the current chief executive officer of CBZ Holdings, takes up his new position on May 1, market expectations are already high that he is the right man for the job.
Mangudya takes over from former governor Gideon Gono whose term of office expired last November.
Acting central bank governor Charity Dhliwayo will retain her position as deputy until her term expires in April 2017.
In a market commentary, research firm Econometer Global said the appointment of Dr Mangudya was a welcome development given his impeccable public and private record, before he became the group CEO of the country’s largest bank by both market share and asset size.
“He managed to grow the banking group in a harsh economic environment; it was also under his watch that a life assurance arm was born from the group’s leverages.
“Today the group seems to be moving in the right direction in expanding the non banking business which forms part of their strategy,” the company said in a research note.
Econometer Global said Dr Mangudya’s open criticism of trade sanctions imposed on Zimbabwe by the West made him a reliable candidate.
“His appreciation of banking and economics is quite sound.
“His charming cum simple approach to handling the market is a positive given that he is arguably the most approachable banking executive in the land. It is our belief that the listening skills he possesses will be carried to the apex bank as his task is already well cut out for him,” added the company.
“Ironically; he remains the manager of the exchequer account since his days at CBZ where he partook as a de facto central bank chief.
“This coincides with the transfer of the Exchequer Account to RBZ where he is taking over.”
Players in the banking sector and industry in general are also hopeful that the new governor will be able to unlock more lines of credit to the country given his links with regional lender – African Export-Import Bank (Afreximbank).
The bank last week made available $100 million to kick start the interbank market.
In appointing Dr Mangudya, Finance Minister Patrick Chinamasa described him as a “Keynesian economist who believes in discretionary fiscal and monetary policies”.
“Mangudya is a substantial figure and well-trained with lots of experience, but the governor’s job is seriously constrained by the dollar economy,” Hawkins said. “Money supply is obviously out of the bank’s control, as are interest rates”.
Born on October 5, 1963 in Mutambara-Chimanimani, Mangudya is married to Tapiwa and the couple has three children Farai, Rutendo and Anesu.
The family has interests in farming, transport and clothing businesses.
Fact-file
Holds BSc Economics and an MSc Economics from University of Zimbabwe
PhD in Business Administration – Washington International University
Has 27 years of banking experience.
1986 to 1996 RBZ as an economist.
1996 to 1999 African Export-Import Bank (Afreximbank) as regional manager in charge of Southern Africa.
2000 to March 2014 CBZ.
2000 to 2004 as general manager (international banking).
2004 to 2006 Executive director (corporate and merchant banking).
2006 to 2012 Managing director.
2012 to March 2014 Group chief executive officer.
Former Bankers’ Association of Zimbabwe president. – Harare Bureau
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