Tito Mboweni is a step in the right direction for SA's economy

The appointment of Tito Mboweni as new Finance Minister is a confidence-building and reassuring step for the economy.

This is according to renowned economist Prof Raymond Parsons from the North-West University's (NWU's) Business School.

"The replacement of outgoing Finance Minister Nene by former South African Reserve Bank Governor and Minister of Labour, Tito Mboweni, helps to ensure stability and consistency in policy direction, especially with the imminent medium-term budget policy statement on 24 October," he says.

"The vulnerable state of South Africa's public finances will continue to require a firm hand at the National Treasury to implement fiscal consolidation."

Prof Parsons says the latest change at the top of the National Treasury comes at a time when policy uncertainty remains in negative territory and when plans, policies and new initiatives to promote economic recovery and reform need high credibility.

He says reducing policy uncertainty and boosting investor confidence are still high priorities.

"Mr Mboweni possesses the necessary integrity, skills-set and experience which can generate confidence in the markets, among investors and generally in the business community."