In a recent virtual question and answer session with the National Assembly, President Cyril Ramaphosa addressed concerns and provided insights on the future of the South African economy, the mandate of the South African Reserve Bank, and efforts to combat violence against women and children.
President Ramaphosa expressed his hope and trust that the standards of living for South Africans would improve in the future, with lower inflation and higher levels of economic growth.
He acknowledged that as inflation rises, the cost of living goes up, making it difficult for people to afford essential items. However, he stated that there is currently no intention to review the mandate of the Reserve Bank.
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When questioned about the Reserve Bank’s mandate, President Ramaphosa emphasized the importance of price stability and curbing inflation.
He explained that higher inflation negatively impacts the poor, as it devalues the currency and hampers investment in the country. While the Reserve Bank considers broader objectives such as employment creation and economic growth, its primary focus remains on maintaining price stability.
DA leader John Steenhuisen raised concerns about the Reserve Bank’s independence, citing Ramaphosa’s exoneration in the Phala Phala matter.
Steenhuisen questioned whether this exoneration could potentially enable money launderers to exploit loopholes and undermine the government’s efforts to combat illicit financial activities.
In response, President Ramaphosa reaffirmed the independence of the Reserve Bank and emphasized its reputation as a highly respected institution. He stressed the need to uphold the central bank’s independence and ensure its continued credibility.
The President also acknowledged the challenges posed by high inflation and interest rates, which deter investors from contributing to the country’s economic growth.
However, he expressed optimism that these challenges are temporary and that South Africa will experience higher levels of growth, lower inflation, and consequently, lower interest rates in the future.
