Cashing in on Nelson Mandela

Nelson Mandela's image will replace that of the Big Five on South African banknotes.

President Jacob Zuma made the announcement yesterday at the Reserve Bank in Pretoria on the 22nd anniversary of Mandela's release from prison.

The new notes will go into production immediately and will be in circulation before the end of the year.

This will be the first time the face of a former president features on the R10, R20, R50, R100 and R200 notes.

The new currency will also include upgraded security features and a raised strip for the visually impaired.

The South African Bank Note Company (SABN), which is owned by the Reserve Bank, has been embroiled in controversy over the past three years. Its former managing director, Musa Mbhele, was dismissed, and reports surfaced that the country's R100 notes were being printed in Sweden because an SABN machine had been printing the currency without a key security feature.

Reserve Bank governor Gill Marcus declined to say where the new notes would be printed, but said the Reserve Bank had every confidence in the SABN.

Marcus said the redesign of the banknotes - the first since 1992 - had cost R2.5-million.

News on Friday of an expected announcement of "national importance" by the Reserve Bank spread mild panic and led to a 2% drop in the exchange rate.

Marcus apologised for the confusion, but said: "Given the importance, we thought it was vital to announce the news officially and not just let it leak to the public."

She said Mandela was consulted about the redesign. "We personally went to see him and he was excited and very moved."