The Africa National Congress has decided that government should begin the process of nationalising the South African Reserve Bank. It currently has private shareholders.
Rob Rose editor Financial Mail says while the process is possible, it will take a long time and it's completely meaningless.
The private shareholders, there is only 600 of them and they can only own a maximum of, I think 1 000 shares and only get R1 000 per year in dividends. They have no impact on policy.— Rob Rose, Editor Financial Mail
It is the most meaningless of decisions.— Rob Rose, Editor Financial Mail
Rose say the impact this decision does have is a concession towards the radical economic wing of the NEC. He says they have a hang up about the SA Reserve Bank, and this decision may appease them. This may give the Ramaphosa faction more leverage on other issues.
As to whether this decision will cost a lot of money, Rose says this will depend on the price set from the shareholders.
Listen to the full interview below:
This article first appeared on 702 : 'Nationalising SA Reserve Bank is a meaningless construct'