ANC intent on driving investment away

The Democratic Alliance (DA) will write to the Minister of Finance to obtain details of the ANC election manifesto statements that the party intends to change the mandate of the South African Reserve Bank (SARB) as well as to prescribe to financial institutions where they must invest the money they hold in trust on behalf of bank depositors, pension and retirement fund contributors, pensioners and insurance policyholders.

The imposition of prescribed assets is exactly what the apartheid regime resorted to in desperation when they could not raise capital in the international markets. Now the ANC is to resort to the same annexation of private funds as international markets hold back on making capital available to South Africa.

Instead of announcing bold new initiatives to stimulate economic growth and job creation, the ANC has decided to simply “expropriate” ordinary South Africans’ savings to try to save bloated and corrupt State-Owned Entities such as SAA and ESKOM.

Clearly President Cyril Ramaphosa has not had the backbone to stand up to the SACP/COSATU and has capitulated to their demands for these changes to the SARB mandate and to imposing a prescribed asset regime.

What these changes will undoubtedly bring about will be to:

Make the South African Reserve Bank a battleground as the destructive forces in the ANC and its ally the EFF push the agenda to change the SARB mandate. We urge the SARB Governor to withstand the coming onslaught and to continue to focus on the existing SARB mandate.

Result in further downgrades by international ratings agencies no matter how much charm and spin President Cyril Ramaphosa puts on these economically destructive changes.

Drive away foreign direct investment,

The losers as a result of these very foolish moves by the ANC is the will be to create more unemployment and misery for the majority of South Africans. There can be little doubt that unemployment numbers in 2019 will sky rocket way beyond the 10 million mark.

Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 13 January 2019