Four must-read stories on the SARB - from clashing statements to the EFF's response

07 June 2019 - 07:08 By Cebelihle Bhengu
Finance minister Tito Mboweni has been accused of arrogance by the EFF over his comments on the Reserve Bank.
Finance minister Tito Mboweni has been accused of arrogance by the EFF over his comments on the Reserve Bank.
Image: Esa Alexander

The Reserve Bank continues to be the talk of the town following mixed responses from senior ANC members on changing its policy.

On Tuesday, the party’s secretary-general, Ace Magashule, finance minister Tito Mboweni and ANC economic transformation head Enoch Gondongwana each gave contradictory statements on the matter, which saw the public question the party's stance on the central bank. 

President Cyril Ramaphosa had previously warned against mixed messages about the Bank. 

Here are four must-read stories on the SARB. 

No SARB expansion

ANC economic transformation head Enoch Godongwana disputed Ace Magashule's utterances that the central bank's mandate will be expanded to curb unemployment and poverty. Magashule said this agreement was reached by the executives during the lekgotla.  

Godongwana said there was no such policy decision but that finance minister Tito Mboweni and the central bank's head would evaluate economic performance and "co-ordinate macroeconomic policy in the interest of balance and sustainable economic growth".

EFF criticizes Mboweni over SARB comments

EFF spokesperson Mbuyiseni Ndlozi slammed Mboweni following his comments in which he denied that he has a role to play in SARB as indicated by Godongwana. Ndlozi accused him of arrogance and thinking “he is above the political will of the people”.

"He acts like a paragon of wisdom as if he is omniscient on economic matters. It is a proven fact that his economic thinking and ideas, which have characterised the macroeconomic policies of the successive ANC government over 25 years, have dismally failed to create jobs, alleviate poverty and reduce inequalities."

Public questions ANC unity on SARB

Following three contradictory statements on the bank’s policy expansion by the party’s big-wigs, South Africans took to Twitter to question the party’s stance on the bank and to criticise the clashing opinions which made the party's internal divisions visible to the public.

Ramaphosa takes aim at Magashule

In June last year, President Cyril Ramaphosa warned MPs against giving contradictory statements on the central bank's nationalisation. He and Ace Magashule had been at opposing ends on the matter, with Ramaphosa saying the bank would remain privately owned while Magashule said the opposite. Ramaphosa lamented the risk of losing investors if the leadership continued to give mixed messages in public. 

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