Is South Africa About To Embark On A Policy Of Nationalization?

President of the African National Congress (ANC) Cyril Ramaphosa with Paul Mashatile (L) and spokesman Zizi Kodwa address the media at the Nasrec Expo Centre, where the 54th National Conference of the ruling party is taking place in Johannesburg, South Africa December 19, 2017. REUTERS/Rogan Ward

Reuters: South Africa's ANC calls for nationalizing central bank, land expropriation

JOHANNESBURG (Reuters) - South Africa’s ruling African National Congress has adopted a resolution calling for the nationalization of the central bank and land expropriation without compensation, a senior party official said on Wednesday.

Any mention of nationalization in South Africa is enough to spook investors, since left-wing elements of the ANC have also called for mines and banks to be state-owned.

Similarly, land is an emotive issue two decades after the end of apartheid, and the ANC has been under pressure to redress racial disparities in land ownership.

Unlike most central banks in the world, the South African Reserve Bank has been privately owned since it was established in 1921. But its shareholders have no control over monetary policy, financial stability policy or banking regulation.

Following a meeting of party delegates, the head of the ANC’s economic transformation committee, Enoch Godongwana, told reporters changing the ownership of the South African Reserve Bank would not affect its independence.

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WNU Editor: After witnessing the disaster in Zimbabwe, it is amazing that there are some in neighboring South Africa who believe that they should do the same, while feeling confident that it would not produce the same results.