The heavy (but pointless) cost of nationalising the Reserve Bank
Will government fork out thousands of rand per share to nationalise the SA Reserve Bank?
Government could part with thousands of rand to buy even a single share in the SA Reserve Bank if the ANC national executive committee (NEC) finalises the party’s elective conference resolution to nationalise the central bank. With the finance ministry already scrambling to plug a possible R50bn revenue shortfall and find funding for President Jacob Zuma’s free education drive, this could place SA’s already strained public finances under severe pressure, given that the Bank has 2m shares. At its 54th elective conference in December, where Cyril Ramaphosa was elected president, the ruling party commanded government to nationalise the Bank in a manner that would not "benefit private sector speculators". Asked to explain what this means, party representative Khusela Sangoni was cagey. "Wait for the NEC to process, finalise and release the resolutions of conference," she said, without providing any timelines. Tito Mboweni, a member of the NEC and former governor of the Bank, who, accord...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.