Shares in Sarb 'not an investment purchase'

Reserve Bank Governor Lesetja Kganyago announced the availability of shares at a briefing in Pretoria on Thursday.

Reserve Bank Governor Lesetja Kganyago. Picture: GCIS.

PRETORIA – While the availability of 149,000 South African Reserve Bank (Sarb) shares for sale to the public has been welcomed, potential buyers have been warned it’s not an investment purchase but rather an opportunity to participate in the bank’s affairs.

Governor Lesetja Kganyago announced the availability of the shares at a briefing in Pretoria on Thursday.

The move follows a High Court ruling made last year which directed some Reserve Bank shareholders to sell their shares that were in excess of the statutory limit of 10,000.

Kganyago hopes the sale of the shares will diversify the bank’s shareholder profile.

“Get a share of Sarb today and in so doing join the Sarb in so doing the economic well being of all South Africans.”

But Rand Swiss’s Gary Booysen says it’s not an investment purchase.

“You wouldn’t buy shares in the Reserve Bank with the hope of making a profit. As a shareholder of the Reserve Bank you get to discuss the annual report, you get to consider special business of the Reserve Bank and you do get to serve an a non-director.”

Reserve Bank shares deliver an annual, legally prescribed dividend of 10 cents per share.