CAPE TOWN (Reuters) – An opposition politician’s bill to nationalize the South African central bank that spooked investors when first unveiled a year ago has been revived and referred back to lawmakers, parliamentary papers showed on Tuesday.
The reintroduction of the bill comes at an awkward time for President Cyril Ramaphosa, who is on an investment drive to boost an ailing economy. 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.
Introduced by leftist politician, Julius Malema, in August last year, the bill lapsed when a new parliament was elected in May. Malema’s Economic Freedom Fighters were one big winner, gaining 19 new seats.
When initially introduced, the South African Reserve Bank Amendment Bill put pressure on the ANC to go through with a plan it shelved in 2018 and rattled markets wary of threats to the central bank’s independence.
The ANC has said any plans to nationalize the bank will be done responsibly and not affect the institution’s mandate or independence. Reserve Bank governor Lesetja Kganyago has previously warned that the ownership debate was increasing investor uncertainty and pushing up the risk premium attached to the country’s debt.
Unlike most central banks in the world, the South African Reserve Bank (SARB) is privately owned. The ANC resolved at a party conference in December 2017 to move it into full state ownership.
Malema’s private members bill will be referred to the Standing Committee on Finance for further deliberations and public input before the lower house of parliament votes on it. If passed, it would normally then go to parliament’s upper house for approval before Ramaphosa signs it into law.
Malema, however, believes it is not necessary to refer the bill to the upper house, which could hasten its passing.
Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
South Africa’s Rugby Victory Has Lessons for All of Us (Bloomberg Opinion) — By winning the Rugby World Cup final against England on Saturday, South Africa became only the second country to secure three cup titles. In upsetting a heavily … read more
Leader of South Africa’s leading opposition party resigns FILE — In this Friday, May 10, 2019 file photo Mmusi Maimane, leader of the largest opposition party, the Democratic Alliance, addresses the media after the country’s general elections in Pretroia South … read more
South Africa’s Zuma to appeal decision to deny permanent stay of corruption charges JOHANNESBURG, Oct 15 (Reuters) – Former South African president Jacob Zuma will appeal a high court decision to deny him a permanent stay of prosecution on charges … read more
South Africa’s deputy mines minister dies in car accident JOHANNESBURG, Sept 14 (Reuters) – South Africa’s Deputy Minister of Mineral Resources and Energy Bavelile Hlongwa has died in a car accident, President Cyril Ramaphosa said on Saturday. Hlongwa, 38, who … read more
Huawei’s Dominance of Africa’s Mobile Networks Mean More Spying on African Citizens Stratfor Worldview Technology, Africa A huge problem. Key point: Huawei is building 4G and 5G mobile networks throughout Africa and working with national governments to help them spy … read more
Africa’s Catholic Churches Face Competition and a Troubled Legacy as They Grow Joseph Hellweg History, Africa Pope Francis at the Monument Mary Queen of Peace, in Port Louis, Mauritius on Sept. 9, 2019. Pope Francis has completed his seven-day tour … read more
With US Help, Africa’s Coastal Nations Are Learning to Work Together Maritime security only works when entire regions cooperate. About a decade ago, most coastal African countries lacked the gear and know-how to effectively track maritime threats. Just as importantly, … read more
S. Africa’s Kganyago Confident on Economic Growth After Rebound (Bloomberg) — Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. A surprise rebound in economic growth in the second quarter means … read more
Business leaders urge South Africa’s Ramaphosa to reform faster CAPE TOWN (Reuters) – South African business leaders on Wednesday urged President Cyril Ramaphosa to push through reforms faster to lift the economy and curb investment outflows, as executives and policymakers … read more
West Africa’s historic slave sites bear witness to brutal trade By Zohra Bensemra and Luc Gnago KUNTA KINTEH ISLAND, Gambia, Aug 29 (Reuters) – When Gambian boat captain Abdoulie Jabang ferries visitors to Kunta Kinteh island he tells them that … read more
Why China Is Taking over Africa’s Resources One Country at a Time Akol Nyok Akol Dok, Bradley A. Thayer Economics, Africa The new imperialism. Africa is on the cusp of a new period in its history, its renaissance. Freed from … read more
South Africa’s ANC still wants central bank to be nationalised – party official JOHANNESBURG, July 30 (Reuters) – South Africa’s ruling African National Congress (ANC) still wants the central bank to be nationalised, but this will not affect the institution’s … read more
Is Africa’s Narrative Changing? Hannah Markey, Michael O’Hanlon Security, Africa This year, the big story in Africa is less about growth rates, or big changes for better or worse in conflict dynamics. Instead, the biggest story is in the realm … read more
Nigeria plots course to membership of Africa’s planned free trade zone Nigeria plots course to membership of Africa’s planned free trade zone ABUJA (Reuters) – Nigeria is backing its commitment to join Africa’s recently agreed free trade zone by setting … read more
South Africa’s president responds to critical report JOHANNESBURG (AP) — South African President Cyril Ramaphosa has announced that he will urgently challenge in court a report by the country’s corruption watchdog that found he misled lawmakers about a contribution to … read more
UPDATE 1-South Africa’s Zuma, back at inquiry, says his life is in danger (Updates with more testimony, ANC secretary general’s comments) By Alexander Winning JOHANNESBURG, July 16 (Reuters) – Former South African President Jacob Zuma said on Tuesday he had … read more
South Africa’s ex-president appears at corruption inquest JOHANNESBURG (AP) — Former South African president Jacob Zuma is appearing Monday before a state commission probing allegations of corruption in during his tenure as the country’s leader. Zuma, South Africa’s president from … read more
South Africa’s Zuma to face corruption inquiry JOHANNESBURG, July 15 (Reuters) – Former South African president Jacob Zuma will be questioned at a public inquiry into state graft on Monday, a dramatic fall from grace for a politician who has … read more
South Africa’s Reserve Bank expected to cut rates on July 18: Reuters poll South Africa’s Reserve Bank expected to cut rates on July 18: Reuters poll By Vuyani Ndaba JOHANNESBURG (Reuters) – The South African Reserve Bank is likely to … read more
South Africa’s Ramaphosa says Eskom cannot be allowed to fail CAPE TOWN (Reuters) – South Africa’s President Cyril Ramaphosa used his state of the nation address on Thursday to pledge to speed up 230 billion rand ($16.11 billion) of support … read more
South Africa’s new Cabinet sees gender balance for first time ever South Africa’s president announced a new cabinet Wednesday that for the first time in the country’s history will be made up of 50 percent women – and one of … read more
South Africa’s President Ramaphosa sworn in – BBC News South Africa’s President Cyril Ramaphosa has been inaugurated at a stadium in the capital Pretoria. The African National Congress (ANC) leader vowed to tackle corruption and rejuvenate the struggling economy. More … read more