Calls to nationalise SA Reserve Bank

Johannesburg - The appointment of Lesetja Kganyago as SA Reserve Bank (Sarb) governor is an affirmation of "neo-liberalism" in the country, the Economic Freedom Fighters (EFF) said on Tuesday.

"Kganyago has been part of the neo-liberal thinking that constituted both the ANC government and the Sarb for a while," it said in a statement.

"The idea of inflation targeting and reliance on foreign direct investment as central to macroeconomic planning have not provided anything for the poor. Kganyago is part of that implementation of neo-liberal policies as the director general in the National Treasury and continues to espouse this thinking to this day."

President Jacob Zuma announced Kganyago's appointment at the Union Buildings in Pretoria on Monday. Current governor Gill Marcus steps down on November 8.

The EFF said all private banks should be nationalised, with government owning 60% of their shares.

READ: Kganyago must ditch 'disastrous' policies

Banks had to be given development and job creation mandates, contribute to education and be "democratically run".

"Only a vision of regulating and structuring monetary policy rooted in these ideals can bring about change in the lives of ordinary and poor South Africans," the party said.

Nationalising Sarb

The Pan Africanist Congress (PAC) on Tuesday welcomed "the new trend of showing confidence in Africans to lead institutions which are pillars of the economy".

"It was an accepted norm over the past 20 years and beyond to entrust the economy to sons and daughters of settlers," the PAC said in its statement.

"Africans in political office did not believe that African managers were capable of running serious institutions."

At the same time the PAC said it continues to reject the notion of "the monetary policy being formulated by a private company", namely Sarb.

"The nation is at the mercy of Sarb shareholders and their interests. Moreover, the constitutional perspective of autonomy, which provides the Monetary Policy Committee meetings unquestionable powers, remains one of biggest risks to national security," said the PAC.

This is because in its view "a foreign power can buy shares and control the bank, not withstanding limitations in shares".

According to the PAC accountability to parliament does not mitigate this risk.

The PAC called on the state to either nationalise Sarb or  to reallocate the monetary policy and bank supervision functions to the Financial Services Board (FSB).

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