ANC Wants Clear Mention Of Job Creation In Central Bank's Remit

South Africa's Minister of Finance, Enoch Godongwana, said that while the ANC supports the independence and inflation-targeting policies of the SA Reserve Bank, it would like a clear mention of job creation in its remit.

"The mandate of the South African Reserve Bank is to protect price stability in the interest of balanced and sustainable growth, implied in that is employment creation," Godongwana, who is also a high-ranking member of the ANC, said in an interview in Johannesburg, Bloomberg Reported.

A clear reference to jobs won't have an impact on the central bank's activities because it takes a variety of factors into account when carrying out its constitutional duty, the minister said.

Godongwana's remarks follow President Cyril Ramaphosa's downplaying of suggestions that a mandate modification is forthcoming on Jan. 9.

"(The ANC resolution) does not say its independence must be eroded," said Godongwana, as per Zawya.

The South African Reserve Bank, however, has repeatedly said that increasing economic output and job creation are outside of its purview and that the poor will suffer the most if inflation is not controlled.

ANC leader, Gwede Mantashe, said last week that the party had decided to alter the mandate at its national conference. The prospect has alarmed investors, with the rand falling against the dollar after Mantashe disclosed that a change had been agreed upon.

He further added that the central bank mandate must be expanded to "fit the needs of the economy."

The target range for price growth is projected to be between 3% and 6%, even though the central bank's officials prefer to anchor inflation expectations close to the midpoint of that range.

Changing the mandate of the central bank would involve a constitutional amendment, which would require the support of two-thirds of parliamentarians. Since the ANC only has about 58% of the seats in the National Assembly, it would also need the backing of opposition members.

The leader of the ANC's economic reform committee, Mmamoloko Kubayi, stated that the independence of the Reserve Bank will be safeguarded and that several possibilities for changing the mandate should be investigated, including a constitutional amendment.

Meanwhile, according to President Cyril Ramaphosa, no decision is imminent, but the matter is still being discussed. "It requires a constitutional amendment; it's not just a matter you embark on," he said. "It's not something that's about to happen, it's something that's being debated."