22 March 2014

Zimbabwe: CBZ Boss Named New RBZ Governor

Photo: The Herald
New Reserve Bank of Zimbabwe Governor Dr John Panonetsa Mangudya

ECONOMIST and CBZ Holdings chief executive John Mangudya has been named the new Reserve Bank of Zimbabwe (RBZ) governor, Finance Minister Patrick Chinamasa confirmed Sunday.

Mangudya replaces Gideon Gono who was also head of CBZ before assuming charge at the central bank in 2003. Gono stepped down from the RBZ last year, leaving his deputy Charity Dhliwayo running the apex bank as acting governor.

The new central bank chief holds a BSc and MSc in Economics from University of Zimbabwe as well as a PHD in Business Administration from Washington International University.

He takes over an RBZ hamstrung by debts of more than US$1 billion and unable to perform its lender of last resort function due to undercapitalisation.

Confirming the appointment, Chinamasa told the Sunday Mail: "His Excellency, the President of the Republic of Zimbabwe, Cde R. G. Mugabe, has appointed Dr John Panonetsa Mangudya Governor of the Reserve of Bank of Zimbabwe with effect from 1 May 2014 for a period of five years.

"Dr Mangudya is a Keynesian economist who believes in discretionary fiscal and monetary policies and in the rational expectations hypothesis."

Mangudya worked as an economist with the Reserve Bank until 1996 when he joined the African Export-Import Bank (Afreximbank) as regional manager in charge of Southern Africa.

He joined CBZ Bank Limited at the turn of the millennium as general manager (international banking). He rose through the ranks, becoming executive director in 2004 and managing director in 2006 before his appointment as chief executive in 2009.

Commenting on the appointment of his former CBZ protégé, Gono said: "This appointment is a sure confidence booster to the financial markets and this economy in general.

"He (Mangudya) is one man I know will be equal to the task and challenges ahead.

"He obviously will find both deputy governors Dr Charity Dhliwayo and Dr Kupukile Mlambo incredible pillars of support technically and experience wise, together with the dedicated team of professionals I left behind.

"I join all my predecessors in welcoming Dr Mangudya aboard the community of governors."

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