Page 176 - SARB: 100-Year Journey

The years from 2009 to 2018 were tumultuous in terms of the policy as well as political and economic environment. Moreover, the central bank’s independence was tested, and the institution’s mandate and ownership came into sharp focus. At its 2017 elective congress at Nasrec, Johannesburg, the governing ANC adopted a conference resolution to nationalise the Bank. In 2019, moves were afoot to commence a parliamentary process in this regard. However, that legislative action has not only stalled, as the political fervour cooled down, but the ANC looks to have backtracked on pursuing the issue as it is seen as a lower priority relative to kickstarting and growing the economy post-COVID-19.
Governor Kganyago has stated that he will not back down from a fight to defend the central bank’s independence using the tools at the SARB’s disposal, including the Constitution. Furthermore, the Bank would continue to conduct its work ‘without fear or favour’ as inscribed in the country’s Constitution.
In hindsight, codifying the SARB’s independence in the final Constitution “was a very wise decision,” said Governor Kganyago when reflecting on the issue. In addition to codifying the independence of the SARB, the Constitution also unambiguously sets the mandate for the central bank to protect the value of the currency in the interest of balanced and sustainable growth. This line sets the objective (growth) and the means to that growth (price stability). Later, a financial stability means was added to the SARB’s mandate.
An animated Governor Kganyago, warning against interfering with the SARB’s mandate, during a media interview. /Moeletsi Mabe/Business Times/Gallo Images
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