CAPE TOWN South Africa (Xinhua) --
The South African government will not nationalize banks as
proposed by an adviser to Finance Minister Malusi Gigaba, the Finance Ministry
said on Tuesday.
nationalization of banks is not government policy,” the ministry said in a
Malikane, an adviser to Gigaba, advocated the state takeover of banks, mines and
insurance companies in an editorial published by Sunday Times on April 16, two
weeks after President Jacob Zuma ousted Finance Minister Pravin Gordhan in a
shocked investors and led international rating agencies Standard & Poor’s and
Fitch to downgrade South Africa’s credit rating to junk status.
In an opinion
piece titled “Our chance to complete the revolution,” Malikane, an economics
professor at Johannesburg’s University of the Witwatersrand, also proposed the
establishment of a state bank that would combine all government-owned financial
institutions, the nationalization of the South African Reserve Bank and the
expropriation of land without compensation to the owners.
of Finance would like to place on record that the opinion piece by advisor to
the Minister of Finance, Professor Chris Malikane was written in his personal
capacity as an academic and activist,” ministry spokesperson Mayihlome Tshwete
expressed in the opinion piece are not necessarily government policy, Tshwete
Malikane is within his rights as an academic and an activist to contribute ideas
to national discourse on any subject.
to place on record that the work of the Ministry of Finance will continue to be
guided by policies of the African National Congress (ANC), as articulated in
conference resolutions and in the 2014 election manifesto, Tshwete said.
of Finance remains committed to leveraging on all available policy
tools—monetary, fiscal and structural—to achieving strong, sustainable, balanced
and inclusive growth, according to Tshwete.
Gigaba calls on all sectors of South African society to work together and
support the work that the Ministry of Finance is doing to avoid further
downgrades and in the medium term, to restore our investment grade rating,” said
this week hold meetings with foreign investors in Washington at the IMF and
World Bank Spring meetings in this regard, Tshwete said.
Tuesday, Gigaba briefed Deputy President Cyril Ramaphosa in Pretoria on his
upcoming visit to Washington.
said this was a continuous internal government briefings about what the finance
minister is going to be doing.
“We are very
very supportive of the Minister and his team as they are going to showcase South
Africa to the world”, said Ramaphosa.