ANC bid to nationalise Sarb will be costly, says Kganyago

For the state to nationalise the Reserve Bank, it will have to buy out its shareholders, which will come at a hefty bill to the already strained fiscus.

FILE: Reserve Bank Governor Lesetja Kganyago. Picture: GCIS.

JOHANNESBURG – The African National Congress (ANC)’s bid to nationalise the South African Reserve Bank (Sarb) will be a costly fight.

This is according to Governor Lesetja Kganyago.

For the state to nationalise the Reserve Bank, it will have to buy out its shareholders, which will come at a hefty bill to the already strained fiscus.

Governor Kganyago says some shareholders may not be willing to sell.

“One particular shareholder who could insist on hiking his share price and come up with some ridiculous amount, for example R10,000 or R12,000 per share.”

He says nationalising the Reserve Bank will not be an easy process and may risk the stability of the economy.

The ANC says it will engage thoroughly on the matter before deciding finally on how government should go about nationalising the reserve bank.

But Kganyago insists they will not get involved in a party political process.

(Edited by Leeto M Khoza)