The ANC is investigating a change in ownership of the South African Reserve Bank (Sarb).
A few weeks ago Public Protector Advocate Busiswe Mkhwebane found the Reserve Bank’s monetary policy mandate should no longer focus on inflation targeting.
The Money Show’s Bruce Whitfield asked Investec Economic Strategist Chris Becker why the ANC is moving on the Sarb.
Becker says it’s more complicated than a capture.
He gave the following reasons why the ANC is mulling this over:
A leftward shift of policy and political risk is negatively impacting sovereign ratings and the ability of banks to fund mines and SOEs.
In ANC policy the SOEs are the "axis of the development agenda" (In other words; they will never be privatised due to developmental state/socialist ideological reasons. This is explicit in ANC policy documents.
Policy risk in the mining sector and undercapitalised SOEs means banks/capital markets/investors are stepping back from SOEs and possibly even mines.
The Tripartite Alliance says that an "investment strike" in mines and SOEs orchestrated by neoliberals and capitalists (in other words; White Monopoly Capital) aims to undermine Government.
Hence, they are readying an alternative financing angle to continue the growth and transformation agenda (Sarb and, probably, a public bank as well) to be "pro-growth and for wellbeing of citizens".
- It's an ideological onslaught from the Tripartite Alliance.
Listen to the interview in the audio below (and/or scroll down for quotes from it).
The US Fed has a dual mandate.— Chris Becker, Investec
The discussion should actually be that the target for inflation is too high.— Chris Becker, Investec
The central bank can’t create prosperity.— Chris Becker, Investec
Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.
Recommendedby THE NEWSROOM
Bruce Whitfield asks Business Day Editor-in-Chief Peter Bruce to speculate on President Cyril Ramaphosa’s Cabinet.
The JoJo brand has entrenched itself in the psyche of South Africans. Bruce Whitfield interviews its MD, Grant Neser.
India’s 2nd largest bank was the last bank to still do business with the Guptas. Bruce Whitfield interviews the bank’s legal rep.
Valentine's Day is hundreds of years old, but some of the tokens of our love are quite new.
The Money Show’s Bruce Whitfield interviews Corruption Watch Executive Director David Lewis.
The Money Show’s Bruce Whitfield interviews Perpetua cofounder Delphine Govender.
Afternoon Drive’s Stephen Grootes interviews Senior Research Associate at the Institute for Security Studies Judith February.
The Hawks are in possession of video footage showing Gupta, wanted in connection with Vrede dairy farm scandal, leaving SA.
Eusebius Mckaiser asked callers what they thought of how opposition parties conducted themselves in yesterday's election.
Tannie Evita Bezuidenhout shares her thoughts on SA's new president.
Cyril Ramaphosa is expected to reshuffle the Cabinet as he takes over from Zuma and makes his mark the National Executive.
Cyril Ramaphosa's ex-wife says abuse allegations spread by EFF leader Julius Malema are an attempt to tarnish his reputation.