South Africa's banks could face further political push

Significance

Mkhwebane's proposal that the SARB should promote broad-based economic growth, rather than focus on inflation and the currency, dominated debates ahead of the ANC's policy conference between June 30-July 5. Subsequently, the ruling party determined that the SARB should be nationalised, while re-affirming its constitutionally guaranteed independence and also demanding the government set up a state bank within six months.

Impacts

• Damaging financial revelations at state-owned enterprises such as Eskom could undermine the impetus for a state-owned bank.
• Opposition parties could mobilise with civil society groups to try force Mkhwebane’s resignation.
• Ongoing corruption allegations surrounding the Passenger Rail Agency of South Africa (PRASA) could implicate the deputy minister of finance.