Why the obsession with the SARB? - Tito Mboweni

Finance minister says Bank should be left alone to pursue its mandate without fear, favour or prejudice


1) I am now reaching a point of total exasperation with this continued attacks and obsession with the South African Reserve Bank.

2) I have explained on many occasions the purposes and functions of the South African serve Bank. What is the issue? What is the problem you want to solve? You blame the reserve bank for everything. Water, unemployment, electricity, growth, ... No people, No.

3) Here is the economic policy architecture:

3.1) The Constitution says that the mandate of the South African Reserve Bank is to “protect the value of the currency in the interests of balanced and sustainable growth in the rebuplic “.

3.2) Then there is this: the South African Reserve Bank operates independently without fear, favour or prejudice provided that there is regular consultations with the Minister of Finance. Done.

3.3) Read carefully. The PFMA clarifies the role of the Minister of Finance and the National Treasury. I quote IN EXTENSO: “ Section 5: Establishment: 1) A National Treasury is hereby established, consisting of , a) the Minister, who is the Head of the (National) Treasury; and ...2) The Minister, as the Head of the National Treasury, takes the policy and other decisions of the (National) Treasury, except those decisions taken as a result of a delegation or instruction in terms of Section 10”.

3.4) Further in the FUNDAMENTALLY critical Section 6, the PFMA says: “FUNCTIONS AND POWERS-

1) The National Treasury must

a) promote the national government’s fiscal policy framework and the coordination of macroeconomic policy

b) coordinate inter-governmental financial and fiscal relations “

4) The point that is normally missed in the public conversations is that in LAW, the Minister of Finance is actually, in terms of section 6 of the PFMA responsible for the coordination of macroeconomic policy in the whole government. It is a very serious matter. In fact, correctly put it is the Ministry of Finance and Economic Coordination by Law.


5.1) Let us leave the South African Reserve Bank alone to pursue its mandate without fear, favor or prejudice,

5.2) Let us focus on micro-economic restructuring to grow the economy,

5.3) Let us stop shouting at business and embrace them as partners in economic growth, investment and job creation,

5.4) Let us embrace ALL farmers, black and white to grow our agriculture. Last year agricultural exports were at about $11 billion. Jobs right there.

6) I rest my case.


4 June 2019
Gauteng Province 

Source: Facebook.