SA’s Macroeconomic Policy Has Been Dictated by a Conservative, Anti-development Agenda

The Economic Freedom Fighters (EFF) welcomes all the submissions by different stakeholders, on the Private Member’s Bill to transfer the ownership of the South African Reserve Bank (SARB) to a democratically elected state, on behalf of all the people of South Africa made during the public hearings held by the Standing Committee on Finance today.

This Bill, introduced by the President and Commander in Chief Julius Malema in 2018, has lapsed twice—first at the end of the 5th Parliament and again at the end of the 6th Parliament. It lapsed not because of a lack of merit, but due to the fear and cowardice of members of the Standing Committee on Finance and the former liberation movement who do not want this Bill finalised. They fear upsetting the white capitalist establishment, which continues to hold undue influence over our economic policy and institutions.

The SARB remains one of very few central banks globally—fewer than nine—that are privately owned. In the case of South Africa, a constitutional democracy, it is an anomaly and an affront to democratic governance that such a central institution, which plays a key role in monetary policy, banking regulations, and economic stability, is not under the control of the people through their democratically elected government.

The SARB is not just responsible for setting interest rates within a restrictive inflation targeting framework; it also exercises regulatory oversight over all private banks. It determines compliance with financial regulations, and effectively influences the availability and allocation of credit in the economy. This gives the SARB far-reaching influence over economic growth, investment, and access to capital—yet it remains in private hands, with government holding no ownership stake whatsoever and we are made to believe that the private shareholding is symbolic yet the establishment fights tooth and nail to keep the status quo.

For the past 30 years, under the leadership of the ANC, South Africa’s macroeconomic policy has been dictated by a conservative, anti-development agenda that serves the interests of the financial sector. National Treasury, often working in contradiction to ANC resolutions and the will of its own conference delegates, has protected the interests of private financial institutions while entrenching a racially exclusive banking sector.

South Africa’s financial landscape continues to be dominated by five major banks— ABSA, Standard Bank, Nedbank, FNB, and Capitec—which continue to mirror apartheid-era ownership and control. These banks operate in a highly concentrated, exclusionary environment that prevents the emergence and growth of black-owned and black-controlled financial institutions.

The SARB, with its private shareholder structure and elitist culture, has been complicit in suppressing any new entrants that threaten the dominance of these banks. There is a deliberate, deceitful campaign to discredit and undermine black financial institutions, particularly those that operate outside the control or influence of the established white capitalist elite.

The EFF therefore particularly welcomes and appreciates the submission by the Congress of South African Trade Unions (COSATU), which supported the Bill.

COSATU’s support represents a principled break from the fearmongering that often surrounds debates about nationalisation, and affirms that workers understand the importance of state control over monetary policy and financial regulation.

We are not surprised that the National Treasury, the SARB, and the Institute of Race Relations (IRR) came to Parliament to oppose the Bill. These institutions have consistently defended the interests of the white capitalist class and opposed any meaningful transformation of our economy. Their opposition is ideological and selfserving, not grounded in the needs of the broader South African population.

The EFF also notes the posture of the former liberation movement, whose members on the Committee continue to trivialise the crisis of joblessness and economic stagnation. In a previous meeting, ANC members went so far as to claim that South Africa does not have an economic growth or unemployment problem—an arrogant and deeply disconnected statement that reveals how out of touch they are with the lived realities of the working class and the poor.

Despite this, the EFF will continue to engage the ANC and other stakeholders on this Bill. The nationalisation of the SARB is, after all, a formal resolution of the ANC’s own policy conference. We believe in implementing this resolution in a manner that enhances the credibility and developmental role of the SARB—not undermines it.

We call on all South Africans who wish to make submissions on the Bill to send them to the EFF National Chairperson and Parliamentary Chief Whip, Commissar Nontando Nolutshungu, at [email protected] .

The EFF’s funding sources include membership fees, donations, and state funding.

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