Page 188 - SARB: 100-Year Journey

Thabo Mbeki takes the oath of office at his inauguration after the 1999 poll. /Getty Images
Thabo Mbeki, President, 1999–2008
Thabo Mbeki was Madiba’s understudy in the Presidency, serving as Deputy President of the first democratically elected government. In 1999, Mbeki became President. In 1998, he had been assigned to deliver the news to Tito Mboweni that a decision had been taken for the then Minister of Labour to succeed Stals at the Bank.
Before becoming President, Mbeki was considered a de facto prime minister because he was not only hands-on, but was also instrumental in crafting key policies. As Madiba went around the globe building goodwill for South Africa, Mbeki was back home hard at work in the business of government.
Mbeki, as Deputy President, was instrumental in the institutional reforms that resulted in the Department of Finance and Department of State Expenditure being collapsed into one entity − the National Treasury − as well as the formation of a separate entity for tax administration – the South African Revenue Service. In addition, Statistics South Africa was an outcome of the reforms through a legislative process.
Furthermore, the Public Finance Management Act 1 of 1999, a lynchpin tool in enforcing institutional and governance accountability and transparency, was adopted during Mbeki’s first term in office as President.
Mbeki’s foregrounding was deliberate on Mandela’s part. The elder statesman was a disciple of succession planning. Mbeki’s experience as Deputy President and his visibility would ensure a smooth transition, should Mbeki ascend to the highest position – party processes permitting. Mandela knew this well, and would be proven correct.
The Mbeki-led government helped implement a new macro- economic framework. The net result was a substantial decrease in government debt and the creation of a surplus. In addition, South Africa documented a sustained growth rate of 5% over a prolonged period.
Nelson Mandela and Thabo Mbeki after the opening of Parliament in Cape Town, 1999. /Getty Images
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