South Africa should get off global regulator's 'grey list' in 2025, says Kganyago
South Africa's central bank governor said on Wednesday that he was confident the country would be removed from an international financial crime watchdog's "grey list" next year, given the work that is under way to fix identified issues.
The International Financial Action Task Force (FATF) last year placed South Africa on a "grey list" of countries under special scrutiny over implementing standards to prevent money laundering and terrorism financing.
Speaking at a financial sector conference, South African Reserve Bank Governor Lesetja Kganyago said being on the watch list had "been a costly episode for us".
"The lesson is that joint efforts are required to look after the integrity of South Africa's financial system. We all suffer when this is compromised," he said.
Last month, the National Treasury said the task force confirmed that five of 22 actions it had identified had been addressed or largely addressed, but that it would be a challenge to address all remaining 17 items by February 2025, when the task force conducts its next review.
Being placed on the list was a reputational setback for Africa's most advanced economy, and analysts said it could complicate its attempts to obtain funding and support from multilateral development institutions and official lenders, among other negative factors.
South Africa's economy eked out marginal growth of 0.6% in 2023, with growth inching up just 0.1% in the final quarter.
"We are falling behind. A big reason for this is that other places have functioning rail networks, ports and electricity," said Kganyago.
At the same time, government debt has risen too fast and is too high, he said.
Inefficiencies at South Africa's State power utility Eskom and port and freight rail operator Transnet have stifled growth, while a cost-of-living crisis has squeezed consumer spending.
Comments
Research Reports
Projects
Latest News
Showroom
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
