The Banking Association of South Africa (BASA) has welcomed the appointment of Dondo Mogajane as National Treasury’s new director general, saying that it was a step in the right direction that would boost investor confidence.

National Treasury announced Mogajane on Wednesday as its new director-general after Cabinet confirmed his appointment.

In a statement, BASA’s managing director Cas Coovadia said that Mogajane’s appointment was a clear sign of the institutional stability of National Treasury and boded well for boosting local and international confidence in the country.

“The appointment of Mr Mogajane is a step in the right direction by Cabinet. He has almost two decades of experience at National Treasury, and is a highly capable finance professional,” Coovadia said.

“We regard his appointment as a harbinger of the policy continuity promised by the Minister of Finance.

Mogajane succeeds Lungile Fuzile who last month asked to be released from his duties a year before his contract could come to an end in May 2018 following the Cabinet reshuffle at the end of March.

Mogajane, who was the deputy director-general responsible for the public finance division, had been acting in the position since Fuzile’s departure.

He has also been involved in the CEO Initiative, where he had been very active on behalf of National Treasury.

“This quick, decisive and prudent appointment will contribute towards local and international investors looking favourably at South Africa. We look forward to working with Dondo in his new role, and the rest of the National Treasury team to place our economy on an inclusive growth path,” Coovadia said.

Mogajane joined the National Treasury in 1999 and he has worked in various areas including, among others, the Intergovernmental Relations, Provincial Budget Analysis and International Economic Relations divisions.