Treasury Rejects Reserve Bank Nationalisation Plan
The National Treasury has firmly rejected renewed calls to nationalise the South African Reserve Bank (SARB). They stated that no reforms to the central bank’s ownership or mandate are being considered.
In a statement issued on Tuesday, Treasury said the current structure of the SARB supports macroeconomic stability. It is also consistent with international best practice. The department made it clear that there is no intention to amend the South African Reserve Bank Act or alter the bank’s mandate.
EFF Continues Push for State Ownership
The Economic Freedom Fighters (EFF) has long championed the nationalisation of the Reserve Bank. They call for full state ownership to increase government control over monetary policy. However, Treasury’s statement indirectly addresses these efforts. It underscores that the SARB’s independence is protected by the Constitution and its shareholder structure has no influence over policy decisions.
According to Treasury, “there is no credible evidence” that nationalising the SARB would result in improved economic outcomes. The department argued that the debate over ownership is distracting from the more urgent need for inclusive economic growth and structural reform.
Constitutional and Economic Safeguards
Treasury reaffirmed that the SARB’s independence remains a critical pillar of South Africa’s economic framework. While South Africa is among the few countries with privately held shares in its central bank, shareholders have no say in governance or policy. This point is often misunderstood in public discourse.
“Changing the shareholder structure will not change the role or function of the Reserve Bank,” the department said. They warned that tampering with the current framework could undermine policy credibility and investor confidence.
The Treasury’s firm stance signals a continued commitment to macroeconomic stability and institutional independence. This is despite ongoing political pressure to reform the SARB.
