Opening Remarks for Deputy Governor Daniel Mminele at the Joint Press Conference of the South African Reserve Bank and the Deutsche Bundesbank
Good afternoon, ladies and gentlemen
Welcome to all of you for this media briefing, jointly hosted by the South African Reserve Bank and the Deutsche Bundesbank. The purpose of this briefing is to inform you about about the Bundesbank establishing a presence in South Africa by way of posting one of its representatives at the German Embassy here in Pretoria.
There will be a celebratory event at the German Embassy here in Pretoria later today to mark this very important occasion. This posting of a representative of the Bundesbank to South Africa, and I believe the first of its kind on the African continent, further strengthens the relationship between Germany and South Africa, and between the Bundesbank and the South African Reserve Bank in particular.
The Bundesbank has representative offices in all the major capitals globally to keep abreast of economic and financial developments in these centres, to liaise with policy makers and to undertake joint projects which are of mutual benefit. My colleague, Dr Dombret will give you some more information about this in a few moments.
Inter alia the representative will facilitate collaborative research projects between our two central banks in the areas of monetary policy and financial stability for the benefit of both parties. This development highlights the importance that the Bundesbank places on our relationship and the German presence in South African society, including in the business, diplomatic and social spheres.
The posting of a Bundesbank representative to South Africa also underpins the ongoing cooperation between the SARB and the Bundesbank which has developed over many years.
This engagement will also further strengthen our capacity individually and jointly to participate in international organisations and forums with the intention of securing outcomes that are beneficial to our countries, but more importantly also to contribute to global economic and financial stability. As many of you will know, Europe is important to South Africa and Africa, given the large trade and financial linkages that exist.
Therefore, European economic developments have significant implications for our economic and financial prospects. The relationship between South Africa and Germany in particular, has been a long and fruitful one and there is no doubt that Germany has made a significant contribution to South Africa’s development.
South Africa and Germany have co-operated in a broad range of areas covering political dialogue, trade and investment, science and technology, the environment, vocational education and training, as well as arts and culture, to name a few.
Just recently, the EU signed an Economic Partnership Agreement (EPA) with the Southern African Development Community (SADC). The EU is the SADC EPA’s largest trading partner, with South Africa accounting for the largest part of EU imports and exports from the region.
South Africa is Germany’s largest trading partner in Africa by some distance, and Germany is South Africa’s second largest trading partner after China. There are approximately 600 German companies represented in South Africa, accounting for around 90 000 jobs.
South Africa has generally recorded trade deficits with Germany, although these have declined in recent years in line with the weak external environment. In 2015, South Africa’s trade deficit with Germany was R37 billion, down from R59 billion in 2014. In the year to June 2016, the trade deficit with Germany has amounted to roughly R24 billion.
Let me conclude by making a few introductory remarks about Dr Dombret Dr Dombret obtained his PhD by the Friedrich-Alexander University in Erlangen-Nuremberg. From 1987 to 1991, he worked at Deutsche Bank’s Head Office in Frankfurt as a manager with the power of procuration. From 1992 to 2002, he worked at JP Morgan in Frankfurt and London, from 1999 as a Managing Director.
From 2002 to 2005, he was the Co-Head of Rothschild Germany located in Frankfurt and London, before serving Bank of America as Vice Chairman for Europe and Head for Germany, Austria and Switzerland between 2005 and 2009.
He was awarded an honorary professorship from the European Business School in Oestrich-Winkel in 2009. Since May 2010, he has been a member of the Executive Board of the Deutsche Bundesbank with currently responsibility for Banking and Financial Supervision, Markets and the Bundesbank’s Representatives Offices abroad.
He is also responsible for IMF (Deputy of the Bundesbank), Financial Stability Commission (FSC) (Member), Single Supervisory Board (SSM) (Member), Basel Committee on Banking Supervision (BCBS), Member of the Board of Directors of Bank for International Settlements, Basel.
In addition, he is a member of the Board of the International Center for Monetary and Banking Studies (ICMB) in Geneva and the Exchange Experts Commission (BSK), as well as the Treasurer of the Atlantik-Brücke. He is also a co-editor of the “Zeitschrift für das gesamte Kreditwesen” an economics journal in Frankfurt. Andreas, it is an honour to host you at the South African Reserve Bank.
Herzlich willkommen!
Thank you.
