The governor of South Africa’s central bank tells The Banker about the challenging position the country finds itself in and the impressive performance of its banking sector.

South Africa's growth forecast of just over 1% in 2019 is a step in the right direction. But issues of debt, inflation and political corruption are still hindering the country's progress. 

A quintet of big banks dominate South Africa's banking scene, but this could change as the arrival of several low-cost digital banks triggers competition. 

At first glance, South Africa is in a position of near-crisis. Its economic growth is sluggish, its government is making a series of unpopular decisions, and a severe drought is denting its agricultural output. However, the private sect seems to approve of the country's new finance minister, and the rand is showing signs of stability. So is there cause for optimism? James King investigates.

Though South Africa's economy is cooling, its banks are continuing to perform strongly. For some, growth is coming from operations elsewhere in Africa, while for others its is stemming from the domestic market. James King looks at the strategies being employed to keep the country's lenders buoyant in a slow-growth environment.

The governor of the South African Reserve Bank, Lesetja Kganyago, tells James King about efforts to combat rising inflation and the impact of a devastating drought on the country’s economic outlook.

South Africa’s growth has been sluggish of late but the country’s financial sector remains one of the world’s most sophisticated, while the government’s reforms are allowing businesses to tap into fast-growing markets in the rest of sub-Saharan Africa more easily.

South Africa’s central bank governor Gill Marcus faces the tricky task of curbing inflationary pressures while trying not to damage the country’s weak economy. Whether or not she succeeds will depend to a large extent on factors outside her control.