ANC heavyweights divided on Reserve Bank mandate

The country’s economy is in serious trouble. GDP dropped by 3.2% in the first quarter of this year. It’s the biggest decline in a decade, and the rand has taken a hard knock. Courtesy #DStv403

JOHANNESBURG - ANC leaders appear to be sending mixed messages on the issue of the mandate of the South African Reserve Bank.

ANC Secretary-General Ace Magashule on Tuesday addressed a media briefing following the NEC's three-day lekgotla.

Magashule said the ANC NEC had agreed to expand the mandate of the South African Reserve Bank.


The ANC has had mixed messages on what the mandate of the South African Reserve Bank should be. Courtesy #DStv403

According to Magashule, the party wants the Reserve Bank to also focus on economic growth and employment.

READ: ANC agrees to expand mandate of SARB

“The NEC lekgotla also agreed to expand the mandate of the SARB beyond price stability to include growth and employment. You don’t need to change the Constitution for that… It will operate the way it's operating,” he said.

However, Finance Minister Tito Mboweni said on Twitter that “Government sets the mandate for the SARB.”

ANC’s economic transformation head, Enoch Godongwana said the ANC's Lekgotla is not a decision-making body.

He was speaking with SAFM's Stephen Grootes.

“We have been debating this issue of mandate of the South African Reserve Bank for a while from the National General Council in 2015 to Nasrec in 2017 and we closed the debate. No other structure can take such a decision and overrule the decision of conference.”

“...The Lekgotla is not decision making. Lekgotla makes decisions and makes a recommendation to the National Executive Committee.”

Godongwana said not even the ANC's highest decision body, the NEC could overturn a conference's resolution.

Did you know?

At its 54th National Conference, the ANC resolved that:

  • The South African Reserve Bank is the central bank of the Republic. It performs its functions independently, but in regular consultation with the Minister of Finance. The right to issue paper money, set interest rates and regulate the financial system resides wholly with the Reserve Bank.
  • It is, however, a historical anomaly that there are private shareholders of the Reserve Bank. Conference resolves that the Reserve Bank should be 100% owned by the state.
  • Government must develop a proposal to ensure full public ownership in a manner that does not benefit private shareholder speculators.

ANC officials are contradicting each other, over whether the party has decided to expand the mandate of the South African Reserve Bank. Courtesy #DStv403


Paid Content