Reserve Bank’s role at issue as ANC holds sombre crisis talks on economic policy

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Reserve Bank’s role at issue as ANC holds sombre crisis talks on economic policy
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ANC holds talks on five key areas — unemployment, the need for a state bank, land expropriation, energy security and the Bank’s mandate

Economic transformation sub-committee chair Mmamoloko Kubayi. Picture: FINANCIAL MAIL/FREDDY MAVUNDA

The Reserve Bank’s price stability mandate and its ownership have long been contested issues within the ANC. The party passed a resolution at its national conference at Nasrec in 2017 calling for the nationalisation of the Reserve Bank, which still has some private shareholders, though government declined to implement this, in part because of the huge cost to taxpayers it would involve.

Internal engagements at the sixth such event, attended by a reported 1,800 delegates, reflect the ANC’s diverse views on policy issues. They lead to recommendations, which will inform resolutions taken at the elective conference in December. Proposals are dismissed when they do not harness sufficient backing.

The constitution sets out its mandate to protect the rand’s value “in the interest of balance and sustainable economic growth”, which must be performed independently without fear, favour or prejudice. President Cyril Ramaphosa’s energy plan to end load-shedding, announced earlier this week, received the ETC’s endorsement. Creamer said the proposal to cut red tape would open a “floodgate” of investment for new energy sources, including renewables. It, he continued, would relieve the national grid, allowing Eskom to conduct maintenance and save on diesel.

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BDliveSA /  🏆 12. in ZA

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