14 March 2025

EFF’s SARB Amendment Bill: A Political Symbol

The Economic Freedom Fighters (EFF) have reignited their push to nationalise the South African Reserve Bank (SARB) through a Private Member’s Bill now tabled in Parliament. While the SARB has operated with state ownership in mind since 2020, the EFF’s Bill aims to remove private shareholders altogether and fully nationalise the institution.

However, the move is largely symbolic. Private shareholders have had no influence over monetary policy or SARB operations. Since amendments to the SARB Act in 2020, their role has been reduced to receiving capped dividends and participating in non-executive functions. Treasury has made it clear that nationalisation, at this point, is unnecessary and potentially disruptive.

Treasury’s Position: Ideology vs Practicality

National Treasury has publicly criticised the Bill as ideologically driven and out of sync with the pragmatic approach needed to maintain investor confidence and central bank independence. The Department views the Bill as lacking practical benefit and potentially undermining perceptions of fiscal stability.

Officials from Treasury have reiterated that any shift in SARB ownership should be weighed against market perception and the country’s international obligations — especially as South Africa navigates economic fragility.

COSATU and EFF: Old Allies on a Stale Agenda

COSATU has supported the Bill in principle, aligning with the EFF’s ideological arguments. Both organisations assert that the SARB should reflect the democratic will of the people. Yet they fail to address the fact that operational control already lies with the state.

Critics argue this is less about economic transformation and more about political point-scoring. In effect, the EFF seeks to revive an old battle for relevance, especially at a time when its broader legislative influence is diminishing.

Conclusion: Much Noise, Little Impact

While the EFF’s SARB Amendment Bill may stir political debate, it lacks the substance needed to reshape South Africa’s monetary landscape. The proposal may succeed in reigniting ideological debates, but it does little to change the Reserve Bank’s current framework or its independence.

For business, the key takeaway is that Treasury remains committed to institutional stability, and any changes to the SARB will be slow, measured, and likely symbolic — especially while the GNU navigates coalition politics and economic uncertainty.

Patrick McLaughlin

editor