The governor of South Africa's central bank has said that the challenges facing his country's ailing economy are now "fundamentally domestic" and will not be impacted by the tightening of monetary policy by the U.S. Federal Reserve or other advanced countries.
Lesetja Kganyago told CNBC Wednesday that emerging economies, including South Africa, had formerly been heavily impacted by the quantitative easing programs of major central banks, particularly during the 2013 taper tantrum when South Africa was hit with a major outflow of capital. However, with some major economies now showing signs of growth while South Africa's remains in technical recession, he insisted that this co-dependence has no diverged.
"The extent of the (South Africa's) slowdown is quite significant," Kganyago admitted.
"What is disconcerting is that this takes place in South Africa at the time when the world economy is recovering faster than we had said, which then says that the reason why South Africa has the growth problems, it does, no longer has to do with the world economy.