MKP statement on Parliament’s decision to process the SARB Amendment Bill

12 September 2024

uMkhonto weSizwe Party welcomes and approves of the decision of the South African Parliament's Standing Committee on Finance to restart the process of amendments to the South African Reserve Bank Act with the aim of discontinuing the bank's private ownership. The Standing Committee on Finance took a correct decision on the 12th of September 2024 to proceed with the SARB Act amendment process that begun in 2018 through a private members' bill.

The MK Party is fully in support of a legislative process which will culminate in the discontinuation of the Central Bank's private shareholding and replace it with responsible and decisive State ownership. The calls and demands for the nationalization of South Africa's central bank are in the People's Mandate of the MK Part for the 2024 General Elections, we are therefore fulfilling our commitment in supporting the bill.

The nationalization of the Reserve Bank is not inconsistent with global standards and practice of central banks as more than 90% of central banks in the world are State owned. We upfront dismiss a notion that the nationalization of the South African Reserve Bank will cost the State billions of Rands because in the current SARB Act, all the private shareholders of the SARB do not have the foreseeable possibility of receiving any billions from the dividends and assets of the central bank.

The MK Part believes that the removal of private shareholders from the SARB, some of whom are not South African citizens will grant South Africa full economic sovereignty and independence. It is long overdue that South Africa should autonomously gain full sovereignty to determine both fiscal and monetary policies.

We call on all progressive forces in Parliament to unite in the process of public hearings and call on independent non-governmental and civil society organizations to come and make inputs to the amendment bill during the public hearings.

Issued by Nhlamulo Ndhlela, Head: Media and Communications, 12 September 2024