ANC's Nationalisation of Reserve Bank must be stopped

30 July 2019

On the same day that unemployment has hit record highs, the ANC has confirmed it will pursue the nationalisation of the Reserve Bank. The ANC sees no link between these two things, but there is a link: bad economic policy repels investment, and leads to higher unemployment. So long as the ANC does not accept this link, our low-growth and unemployment crisis will not abate.

The DA rejects the proposed nationalisation of the Reserve Bank. This is a bad idea that should be resisted by all South Africans, and which we will fight against in Parliament.

Nationalisation would allow the ANC to ramp up the political pressure on the Reserve Bank, with the aim of exerting influence over monetary policy and importantly, over commercial bank licensing and regulation. That is the real agenda. It has little to do with development, and everything to do with extending ANC control over all resource levers.

There is not a single positive outcome from this proposed nationalisation, and the ANC has made no argument as to why this is necessary or desirable. The fact is that it is not necessary, and it is not desirable. It will lead to more investment flight and more job losses.

Issued by Geordin Hill-Lewis, DA Shadow Minister of Finance, 30 July 2019