{"id":353285,"date":"2019-11-12T10:26:17","date_gmt":"2019-11-12T08:26:17","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=353285"},"modified":"2019-11-12T10:29:00","modified_gmt":"2019-11-12T08:29:00","slug":"south-africa-looks-at-new-law-to-nationalise-the-reserve-bank","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/353285\/south-africa-looks-at-new-law-to-nationalise-the-reserve-bank\/","title":{"rendered":"South Africa looks at new law to nationalise the Reserve Bank"},"content":{"rendered":"<p>Parliament has officially revived the bill which proposes the nationalisation of South Africa&#8217;s Reserve Bank, <strong><a href=\"https:\/\/af.reuters.com\/article\/southAfricaNews\/idAFL8N27S1LI\" target=\"_blank\" rel=\"noopener noreferrer\">Reuters<\/a> <\/strong>reports.<\/p>\n<p>The bill &#8211; that spooked investors when first unveiled a year ago &#8211; comes at an awkward time for President Cyril Ramaphosa, who is on an investment drive to boost an ailing economy.<\/p>\n<p>He has to juggle his pro-business approach with left-leaning elements of the ruling African National Congress that want to legislate for land expropriation without compensation, among other policies.<\/p>\n<p>In August 2018, the EFF\u00a0<strong><a href=\"https:\/\/businesstech.co.za\/news\/government\/265619\/eff-tables-bill-to-make-central-bank-state-owned\/\" target=\"_blank\" rel=\"noopener noreferrer\">tabled<\/a>\u00a0<\/strong>the South African Reserve Bank Amendment Bill, which seeks to nationalise the central bank.<\/p>\n<p>South Africa\u2019s central bank is one of the few in the world that\u2019s still owned by private shareholders.<\/p>\n<p>The draft bill provides for the following:<\/p>\n<ul>\n<li>The State as the sole shareholder of the shares in the Bank;<\/li>\n<li>The responsibility of the President of the Republic in consultation with the Minister of Finance and Parliament to appoint the Governor, Deputy Governors and all other directors of the Bank; and<\/li>\n<li>The role of the Minister of Finance as a shareholder to exercise the rights attached to the shares in the Bank.<\/li>\n<\/ul>\n<p>While the bill is a \u2018private members bill\u2019, it aligns with the ruling ANC\u2019s own position on nationalising the Reserve Bank which means it may gain traction from the ruling party.<\/p>\n<p>However, the government may ultimately decide to publish its own draft bill around nationalisation instead of using the EFF\u2019s framework.<\/p>\n<p>The bill will now be referred to the Standing Committee on Finance for further deliberations and public input before the lower house of parliament votes on it.<\/p>\n<p>If the bill is passed, it woud then go to parliament\u2019s upper house for approval before Ramaphosa signs it into law.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/353007\/this-graph-shows-how-bee-has-failed-in-south-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">This graph shows how BEE has failed in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Parliament has officially revived the bill which proposes the nationalisation of South Africa&#8217;s Reserve Bank.<\/p>\n","protected":false},"author":10,"featured_media":336533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-353285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/353285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=353285"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/353285\/revisions"}],"predecessor-version":[{"id":353297,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/353285\/revisions\/353297"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/336533"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=353285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=353285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=353285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}