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Banks (Finance)

Nationalisation of South African Reserve Bank to be Debated in Parliament

Strategic Insights

— 2 min read

The nationalisation of the South African Reserve Bank (SARB) will be discussed in Parliament this week as the finance standing committee holds a public hearing on a bill to amend the law governing the central bank. The bill, introduced by EFF leader Julius Malema, seeks to make the State the sole shareholder of the shares in the bank, following years of deliberation and public input. The hearing comes after the committee briefed by the Parliamentary Budget Office on the bill's socio-economic impact.

Key Takeaways:

  • The bill seeks to amend the SARB Act to make the State the sole shareholder of the shares in the bank, with the minister exercising the rights attached to the shares on behalf of the State.
  • The bill was first introduced in Parliament in August 2018 and has been revived several times, with the most recent revival in July 2024.
  • The bill proposes the appointment of appointed board directors by the Minister of Finance, with a term of three years.
  • The bill also provides for the appointment of two firms of public accountants to act as auditors of the SARB for every financial year.
  • The bill seeks to delete certain definitions in the SARB Act.
  • The SARB Act has a current shareholder base of 650, with the bill aiming to have the State as the sole shareholder.
  • The bill has undergone several revisions, with the most recent revision including changes to the appointment of appointed board directors.
  • The Standing Committee on Finance will hold public hearings on the South African Reserve Bank Amendment Bill in a virtual meeting platform on Wednesday.
  • The public has been given an opportunity to comment on the SARB amendment bill until June 30, with those still wishing to make written submissions having until today at 12 midday to do so.

Statistics:

  • The bill was first introduced in Parliament in 2018 and has been Revised 7 times.
  • The Standing Committee on Finance will hold public hearings on the South African Reserve Bank Amendment Bill in a virtual meeting platform on Wednesday.
  • The SARB has 650 shareholders.
  • The State aims to be the sole shareholder of the shares in the SARB.

Sources:

  • Parliament programme show the Standing Committee on Finance will hold public hearings on the South African Reserve Bank Amendment Bill on Wednesday.
  • The bill was first introduced in Parliament in 2018, a private member's bill from the EFF leader Julius Malema.
  • News article on the South African Reserve Bank amendment bill.
  • Parliamentary Budget Office Brief on the Socio-Economic Impact of the SARB Amendment Bill.
  • The Standing Committee on Finance briefing paper on the SARB Amendment Bill.

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