Page 190 - SARB: 100-Year Journey

Trevor Manuel, Finance Minister, 1996–2009
In April 1996, President Mandela appointed Trevor Manuel as Minister of Finance. Manuel’s mandate was to work together with Cabinet to oversee South Africa’s economic restructuring in four parts: through the implementation of the GEAR macroeconomic strategy; resolving South Africa’s foreign debt obligations; overseeing the reforms to the finance portfolio; and achieving a budget surplus.
Manuel recalled an exchange he had with President Mandela about the debt-servicing costs, which were becoming the biggest line item of expenditure.
Mandela asked Manuel: “Now that you are finance minister, what keeps you awake at night?”
“I said, ‘The debt-servicing costs’.” Madiba responded: “Explain this thing to me.”
Manuel did. Then Mandela understood that the interest being paid was for money which had long been used. The President’s perspective on the issue was that: “If you spend more on that than education then you are spending more in the past [than] in the future.”
Manuel and co. were then given breathing space to kick GEAR into action to drive reforms.
Manuel’s tenure produced a deep well of skilled policymakers and technocrats, including the current top leadership of the central bank.
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Finance Minister Trevor Manuel. /Trevor Manuel Office