Magashule says ANC will nationalise Reserve Bank in next five years

Magashule says ANC will nationalise Reserve Bank in next five years

- ANC secretary general Ace Magashule has said that the ANC will nationalize the Reserve Bank

- He made the statement in an interview with eNCA's Aldrin Sampear

- Magashule said that all of the party's Nasrec resolutions would be implemented in the next five years, including the controversial move to nationalise the Reserve Bank

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While speaking on eNCA's interview show Politbureau, ANC secretary general Ace Magashule stated that the ANC will nationalise the Reserve Bank.

In the interview, he asserted that this would be one of the Nasrec resolutions the party would implement within the next five years.

In response to Sampear asking Magashule directly if he was saying that the Reserve Bank would be nationalized, the secretary general replied, "That's what I'm saying."

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Currently, the Reserve Bank is under the partial control of private shareholders who have no direct influence over monetary policy - an arrangement meant to reduce conflicts of interest and ensure transparency. Nationalising the Reserve Bank would mean that control would essentially shift from the independent shareholders to the minister of finance, according to the DA.

The proposal has in the past received criticism not only from the DA but across the political spectrum. Former finance minister Nhlanhla Nene is one high-ranking ANC member who has spoken out against the nationalisation of the Reserve Bank.

Economist Richard J Grant also argues that such a move would be at best cosmetic and produce little real change, and at worst it would weaken the rand, slow economic growth and lead to job losses.

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Another source of skepticism about bringing the Reserve Bank under state control is the poor performance of several current government parastatals, such as South African Airways and Eskom, which have been accused of poor service delivery, corruption and mismanagement.

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