Sat, 20 Jul 2019

Nothing meaningful can be gained from nationalising the Reserve Bank, former president Thabo Mbeki has said.

He was speaking alongside Gauteng Premier David Makhura and ANC head of elections Fikile Mbalula at the Rand Easter Show on Tuesday, as part of the ruling party's election campaign.

"Really, to this day, I do not know what anyone would gain by the nationalisation of the Reserve Bank, except to say we have nationalised," Mbeki said.

Explainer: South Africa's central bank - ownership, mandate and independence

The SA Reserve Bank is one of a handful of other banks which have private owners. Others include Greece, Belgium and the US.

Shareholders receive a limited dividend of 10c per share per annum. They have no say on policy decisions taken by the Reserve bank in implementing its mandate and they can elect a maximum of seven non-executive directors to the Reserve bank board, Fin24 previously reported.

Speaking at Davos earlier this year, President Cyril Ramaphosa emphasised that the bank would remain operationally independent regardless of its ownership structure, Fin24 reported previously.

He added that the bank's independence was entrenched in the Constitution and government would not interfere with that.

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