An address by Lesetja Kganyago,
Governor of the South African Reserve Bank,
at the Nelson Mandela commemorative banknotes
and R5 circulation coin launch
Freedom Park, Pretoria
13 July 2018
Honourable Ministers
Esteemed guests
My fellow South Africans
It is both a pleasure and a privilege to welcome all of you to Freedom Park on this very
special day.
For the first time in its history of nearly 100 years, the South African Reserve Bank
(SARB) is launching commemorative banknotes, besides a third commemorative
R5 circulation coin, in honour of our first democratically elected President, the late
Nelson Rolihlahla Mandela, fondly known to many South Africans as 'Madiba or simply
Tata'.
While many of us are familiar with commemorative items such as stamps and other
memorabilia, it has become tradition among central banks to issue commemorative
banknotes and/or coins on a significant date to honour a place, an event, a person or
an object.
As the first President of our democratic era, Nelson Mandela promoted reconciliation,
led our reintegration into the global economy, strengthened the framework for
macroeconomic management, and ushered in our new constitution. One of the
founding principles of the constitution is the establishment of an independent central
bank, whose objective it is to protect the value of the local currency in the interest of
balanced and sustainable economic growth.
Why capture the memory of Madiba on money?
One of the main functions of the SARB is to ensure there is a sufficient supply of high-
quality banknotes and coin. This is the function of the SARB that puts it in the pockets,
wallets and hearts of all South Africans.
For many of us in this room, cash is only a secondary form of payment and exchange,
but physical money remains the foundation of the local economy. Every South African,
young and old, uses money. For all the talk about a 'cashless society', digital
transactions, mobile money and so-called cryptocurrencies, millions of South Africans
still depend on cash for daily transactions. The value of banknotes and coin in
public's
circulation amounts to more than R140 billion, and the demand for banknotes
continues to grow. But not everyone has a phone with Internet access or a digital
wallet. In a 'cashless society', people who do not have access to banking services
could end up being excluded from the economy.
It is the responsibility of the SARB to ensure the integrity of banknotes and coin in
circulation. The central bank has to ensure that banknotes and coin remain a secure
method of payment, unit of account, and store of wealth. A banknote is but a piece of
paper, a coin but a piece of metal. Both derive their worth from the trust that the citizens
of a country have in the country's
currency.
South African banknotes and coin are among the most secure internationally. Over
the past five years, the number of counterfeited South African banknotes has
continued to decline. The security features embedded in our banknotes and coin
represent the most innovative advances in global design and technology. It is
important that South Africans know these security features of our banknotes, and the
SARB is making a special effort to educate the public in this regard. Please take note
of our 'look, feel, tilt' approach to checking for the security features and verifying the
authenticity of your money.
Today, the SARB is also launching a mobile application as a platform to create greater
public awareness of the security, technical and design features of our banknotes. The
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app features interesting details on the life and times of Tata Madiba aligned to the
commemorative banknotes.
The confidence that South Africans have in their banknotes and coin is based on trust
-
that the banknotes and coin are authentic and trust in the institution that issues them.
Therefore, the SARB must, without fear or favour, ensure that the buying power of the
currency is protected. We therefore strive to ensure that the public trust in our
banknotes and coin, as well as in the SARB, as the institution that issues them, is
maintained.
Preserving the value of our money contributes to stronger economic growth and
employment creation over time. Furthermore, a low and stable inflation rate protects
the purchasing power of all South Africans and contributes to a lower cost of living.
South Africans should be proud that, despite all the challenges that we face as a
country, we do not live in an economy with very high inflation. Imagine having to cart
your cash in a wheelbarrow to buy a loaf of bread, or the effort it would take to withdraw
that much cash from an ATM.
As I have mentioned in the past: the history of money globally shows that when
inflation walks through the door, public trust in the currency jumps out of the window.
Banknotes and coin become nothing but worthless pieces of paper and metal. Our
banknotes, however, are representative of an economy with sound fundamentals and
prudent monetary policy.
So, how does one celebrate the life of a globally respected and celebrated statesman?
There is such a rich history to the story of Nelson Mandela, as told in his own words
in his bestselling book Long Walk to Freedom, that the SARB has had to use our full
range of banknotes as well as a commemorative R5 circulation coin. The banknotes
President
highlight Mandela's historical journey from the rolling hills of the Eastern
Cape, to Soweto, to Howick, to Robben Island, to the Union Buildings. The
commemorative R5 circulation coin features a portrait of Tata Madiba, smiling at the
nation he helped to build.
Nelson Mandela's life has
touched all of us: South Africans from all walks of life, rural
and urban. What could be more fitting than to commemorate his life through an
instrument that we all use every day? Money touches all of us, young and old. Tata
represents the best version of ourselves as South Africans, and there is no more
appropriate an occasion than his birthday centenary to honour all that he represents
with these commemorative banknotes and R5 circulation coin.
When a young girl in Mvezo or a pensioner in Soweto carry a R10 or R20 note to buy
a loaf of bread, they should know that those two banknotes will change hands more
often than all the other banknotes in South Africa and in some of our neighbouring
countries. One banknote touches many lives.
By drawing strength from our fellow South Africans and identifying those traits which
best reflect The Madiba In Me, we will remind ourselves in the words of Nelson
Mandela that, :
"We are together in this. Our human compassion binds us, the one to the other
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not in pity or patronisingly, but as human beings who have learnt how to turn
our common suffering into hope for the future."
Finally, if you have not already done so, I would really like to encourage you to walk
around the exhibit outside, which reflects on the images on the banknotes and coin. I
also hope that you will take the time to download the currency mobile app from any of
the mainstream app stores and that you will use this app to empower yourself by
learning about the interesting facts and details of our banknotes.
Thank you very much.