Kganyago on policy leadership: evidence, courage, humility
Lesetja Kganyago, Governor of the South African Reserve Bank, addressed the 2026 Youth Leadership Summit on the essence of policy leadership. He highlighted the critical roles of analytical work, courage, independence, humility, and integrity in effective policymaking.
Navigating policy's turbulent waters
Governor Lesetja Kganyago outlined the core tenets of effective policy leadership, emphasizing decision-making under uncertainty with incomplete data.
He highlighted three crucial elements: rigorous analytical work, courage and independence under pressure, and the responsibility to act with humility and integrity.
Kganyago illustrated these principles with personal experiences.
He recounted the initial struggle to expand antiretroviral (ARV) access in the early 2000s, where National Treasury's economic case eventually led to the world's largest HIV/AIDS treatment programme.
Another example involved the Gauteng e-toll system, where a technically sound, user-pays principle faced intense political and social opposition, requiring leaders to stand firm.
He also detailed the South African Reserve Bank's (SARB) successful defense of its independence against a Public Protector report and the navigation of resistance during the introduction of the 3% inflation target, which demanded effective communication and leveraging research credibility.
The bedrock of analytical integrity
Governor Kganyago stressed the paramount importance of analytical integrity, stating that policy decisions must be grounded in rigorous evidence, not instinct or ideology.
He warned that poor analysis, often stemming from flawed assumptions, leads to costly mistakes.
Effective analysis, he noted, requires clarity on the problem, critical data interpretation, understanding inherent trade-offs, and honesty about uncertainty.
He emphasized that the most responsible answer is sometimes a careful acknowledgment of what is not known, rather than a confident projection.
Trust: Earned, not given
Policymaking demands unwavering institutional independence to resist political pressures and ensure long-term sustainability.
History, like the 1970s Fed, shows sacrificing this leads to high inflation and lost credibility.
An institution's effectiveness hinges on public trust, a fragile asset built through transparency and accountability, demanding constant vigilance.
Source: Lesetja Kganyago | Leadership in policymaking
IN: