15 March 2024

The Congress of South African Trade Unions (COSATU) notes the appointment of the South African Reserve Bank (SARB) leadership team led by Governor Lesetja Kganyago and his Deputies.  The Federation wishes them well and hope they will succeed in fulfilling their mandate of protecting the value of the Rand, the growth of the economy and job creation.

We are however disappointed that government missed the opportunity to introduce new blood and persons with a diversity of economic views into the SARB by appointing persons from Treasury’s conservative orthodox school of economic thought. 

COSATU appreciates the need to protect the value of the Rand and cushion workers and the economy from excessively high levels of inflation and rises in the cost living.  We differ however from the approach of the SARB which has increased the repo rate at times by 75 basis points in a single hike and a cumulative 475 basis points hikes over the past two years.  Whilst we need to keep inflation under control and protect the value of workers’ wages, at times the increases in the repo rate have been excessive, squeezed workers’ ability to pay their debts and feed their families, and suffocated the economy.

We hope that as inflation decreases, the SARB adopt a less overly zealous approach to managing the repo rate and provide some relief to workers and the economy by easing the repo rate in a sober manner.

Issued by COSATU

For further information please contact:
Matthew Parks
Acting National Spokesperson & Parliamentary Coordinator
Cell: 082 785 0687