Why the ANC is gunning for the Reserve Bank (holder of ‘money printing presses’)

The ANC is investigating a change in ownership of the South African Reserve Bank (Sarb).

A few weeks ago Public Protector Advocate Busiswe Mkhwebane found the Reserve Bank’s monetary policy mandate should no longer focus on inflation targeting.

The Money Show’s Bruce Whitfield asked Investec Economic Strategist Chris Becker why the ANC is moving on the Sarb.

Becker says it’s more complicated than a capture.

He gave the following reasons why the ANC is mulling this over:

  • A leftward shift of policy and political risk is negatively impacting sovereign ratings and the ability of banks to fund mines and SOEs.

  • In ANC policy the SOEs are the "axis of the development agenda" (In other words; they will never be privatised due to developmental state/socialist ideological reasons. This is explicit in ANC policy documents.

  • Policy risk in the mining sector and undercapitalised SOEs means banks/capital markets/investors are stepping back from SOEs and possibly even mines.

  • The Tripartite Alliance says that an "investment strike" in mines and SOEs orchestrated by neoliberals and capitalists (in other words; White Monopoly Capital) aims to undermine Government.

  • Hence, they are readying an alternative financing angle to continue the growth and transformation agenda (Sarb and, probably, a public bank as well) to be "pro-growth and for wellbeing of citizens".

  • It's an ideological onslaught from the Tripartite Alliance.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

The US Fed has a dual mandate.

Chris Becker, Investec

The discussion should actually be that the target for inflation is too high.

Chris Becker, Investec

The central bank can’t create prosperity.

Chris Becker, Investec

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Eskom: Uncertainty is the issue as mines grind to a halt

Eskom: Uncertainty is the issue as mines grind to a halt

Mines halted operations as Eskom asks for 20% power savings. Uncertainty of when blackouts will happen is a main issue.

Made in South Africa: The Mara smartphone now sells at Vodacom

Made in South Africa: The Mara smartphone now sells at Vodacom

Mara smartphones are now available from Vodacom participating outlets. Bruce Whitfield interviews Ashish Thakkar, Mara's CEO.

Stage 6 loadshedding:  'I am surprised at the shock'

Stage 6 loadshedding: 'I am surprised at the shock'

Bruce Whitfield interviews economist Dr Thabi Leoka on Eskom's shock announcement late Monday afternoon.

Why Anchor Capital is buying MTN, Sibanye and Transaction Capital

Why Anchor Capital is buying MTN, Sibanye and Transaction Capital

The Money Show’s Bruce Whitfield asks Peter Armitage (CEO at Anchor Capital) for his stock picks of the week.

Want to start a small business? Lessons from a successful serial entrepreneur...

Want to start a small business? Lessons from a successful serial entrepreneur...

The Money Show’s Bruce Whitfield interviews Nic Haralambous, founder (at the cost of R5000!) of funky sock company Nic Harry.

Considering emigration? Financial planner discusses the affordability of leaving

Considering emigration? Financial planner discusses the affordability of leaving

Can you afford to leave South Africa? Certified Financial Planner (CFP) Barry O'Mahony on what to consider before deciding.

Popular articles
Made in South Africa: The Mara smartphone now sells at Vodacom

Made in South Africa: The Mara smartphone now sells at Vodacom

Mara smartphones are now available from Vodacom participating outlets. Bruce Whitfield interviews Ashish Thakkar, Mara's CEO.

Stage 6 loadshedding:  'I am surprised at the shock'

Stage 6 loadshedding: 'I am surprised at the shock'

Bruce Whitfield interviews economist Dr Thabi Leoka on Eskom's shock announcement late Monday afternoon.

[WATCH] Fikile Mbalula's funny interview has social media in stitches

[WATCH] Fikile Mbalula's funny interview has social media in stitches

Khabazela shares tweets and Facebook posts that have gone viral.

 Eskom buys fine coal that looks like baby powder when wet, says expert Ted Blom

Eskom buys fine coal that looks like baby powder when wet, says expert Ted Blom

Energy analyst Ted Blom weighs in on the energy crisis in South Africa as load shedding stage 2 is implemented.

SA's Zozibini Tunzi simply the best, crowned Miss Universe 2019

SA's Zozibini Tunzi simply the best, crowned Miss Universe 2019

The 26-year-old is the third South African to be crowned Miss Universe and has made the country proud.

‘South Africans are getting poorer and poorer because of politics’

‘South Africans are getting poorer and poorer because of politics’

SAA is a classic example, says Isaah Mhlanga, Chief Economist at Alexander Forbes Investments.

How to make your first R1 million (after that it just becomes so much easier)

How to make your first R1 million (after that it just becomes so much easier)

Rich. Wealthy. Financially free... Call it what you will; the first million is how you get there. Warren Ingram on his book...

Did you know? SA exports electricity to seven countries in Southern Africa

Did you know? SA exports electricity to seven countries in Southern Africa

Senior Researcher at Africa Check Kate Wilkinson shares their latest from their fact-finding missions.