Economic Freedom Fighters call for SARB to be nationalised

The Economic Freedom Fighters (EFF) on Wednesday proclaimed that the South African Reserve Bank (SARB) will soon be nationalised to serve “the interests of the majority rather than protecting the interests of a privileged few.”

It made the statement following a resolution by Parliament’s Standing Committee on Finance to conduct a second round of public hearings on the SARB Amendment Bill.

The Bill to nationalise the Bank was tabled in 2018 as private member’s Bill by EFF President Julius Malema. It then lapsed at the end of the 6th Parliament and has since been revived in the 7th Parliament.

“The EFF welcomes the Standing Committee on Finance’s decision to revive the bill and conduct public hearings. We urge all progressive stakeholders to prepare their submissions. Progressive stakeholders who require assistance with their submissions or oral presentations are encouraged to contact the EFF.”

READ MORE: SARB urged to look into issue of high interest rates.

The SARB Amendment Bill seeks to, amongst other things, amend the Bank Act to make the state the sole shareholder of the shares in the bank and gives powers to the Minister of Finance to exercise the rights attached to the shares on behalf of the state.

It further seeks to give the Minister power to appoint directors of the board, instead of board members being elected at an ordinary general meeting.

The EFF explained that it introduced the Bill with the understanding that without national control over the issuance of money, no amount of legislation would result to the transfer of the Bank’s ownership.

“We note that the PBO’s [Parliamentary Budget Office] briefing extended beyond the issue of nationalisation. It also emphasized the need for a comprehensive review of the SARB’s mandate.

“This includes assessing the alignment between fiscal and monetary policy, and how the SARB can play a more significant role in advancing industrialisation and transforming the financial sector,” the EFF added.