Speaking at the School of Oriental and African Studies in London last week, Fundi Tshazibana, the deputy governor of the South African Reserve Bank, said proposals to keep interest rates artificially low or fund green projects directly through central bank balance sheets were: “non-starters.” Such policies, she argued, would risk an: “inflation tax” on households and destroy the hard-won trust in central banks’ ability to maintain price stability.

Instead, Tshazibana urged African central banks to strengthen financial systems by developing capital markets, expanding insurance coverage, and supporting transparent carbon-credit trading. “If climate risks contribute to price and financial instability, they become the concern of central banks,” she said. “But our role is to manage these risks, not to take over climate policy.”

Tshazibana said credible climate financing would require fiscal discipline, consistent regulation, and regional co-operation. “Safeguarding the public against inflation is paramount,” she concluded, warning that mission creep would erode both independence and effectiveness.