Reserve Bank Nationalization Bill Revived In Parliament

Riyaz Patel

An EFF motion seeking to nationalise the South African Reserve Bank (SARB) has been revived and referred back to lawmakers, parliamentary papers showed Tuesday, Reuters reports.

The reintroduction of the bill comes at an awkward time for President Cyril Ramaphosa who is on an investment drive to boost an ailing economy, while juggling his pro-business approach with left-leaning elements of the ruling African National Congress (ANC).

The South African Reserve Bank Amendment Bill was introduced by Julius Malema in August last year, but lapsed when a new Parliament was elected in May.

The move rattled markets wary of threats to the central bank’s independence.

The ANC resolved at its conference in December 2017 to move the SARB into full state ownership, but underlined that any plans to nationalise the bank will be done responsibly and would not affect the institution’s mandate or independence.