South Africa must take notice of ANC’s plans to nationalise Reserve Bank

Opinion by FF Plus

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South Africa must take notice of ANC’s plans to nationalise Reserve Bank
South Africa must take notice of ANC’s plans to nationalise Reserve Bank

The fact that nationalising the Reserve Bank is a priority for the ANC sets alarm bells ringing for South Africa’s democracy. The ANC’s election manifesto creates uncertainty about the Reserve Bank’s independence in the future.

In a television interview, the ANC’s Secretary-General, Ace Magashule, confirmed the ANC’s standpoint regarding the Reserve Bank by saying that the party’s resolution to get the bank under government control, which was adopted at the 2017 Conference, will be implemented in the next five years.

As is the case with expropriation without compensation, nationalising the Reserve Bank constitutes a serious attack on democratic principles. There also does not exist consensus about the resolution within the ANC’s National Executive Committee.

The Minister of Finance, Tito Mboweni, has warned against the party’s plan of nationalisation. The ANC’s history of looting the state coffers serves as proof that nothing good can come of nationalising the Reserve Bank.

At present, the Bank’s independence prevents the ANC from having absolute control over the country’s economy. The Reserve Bank has a constitutional mandate to perform its duties independently and without fear and prejudice.

If the ruling party succeeds in nationalising the bank, it will follow in the footsteps of SAA, Eskom, Transnet and Prasa and become yet another ANC failure, which will have far reaching consequences for South Africa’s economy.

The FF Plus will keep fighting back against the totalitarian policy of the ANC which aims to get all state resources under its control. ANC resolutions are no more than party resolutions and implementing the resolution to nationalise the Reserve Bank will have to follow certain processes, including a constitutional amendment, which the FF Plus will oppose.

It is, therefore, imperative that voters fight back against the ANC in the 2019 general elections by voting for the FF Plus that supports free market principles of which an independent Reserve Bank is one of the most important.

Read the original article in Afrikaans by Wouter Wessels on FF Plus

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