South Africa finance aide urges nationalisations

Professor advocates completing ‘revolution’ in Sunday Times.

An adviser to South Africa’s new finance minister advocated the state takeover of banks, mines and insurance companies in a newspaper editorial, two weeks after President Jacob Zuma’s ouster of Pravin Gordhan shocked investors and led to a debt downgrade.

In an opinion piece titled “Our chance to complete the revolution,” published in South Africa’s Sunday Times, Christopher 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 nationalisation of the South African Reserve Bank and the expropriation of land without compensation to the owners.

The Sunday Times said Malikane, who has advised the Congress of South African Trade Unions, is an adviser to Finance Minister Malusi Gigaba, citing Gigaba’s spokesman Mayihlome Tshwete. Gigaba. who was appointed March 31, has pledged to avoid further debt downgrades, and said on April 13 that he urged Zuma to stick to previous budget plans and wants management continuity at the nation’s treasury.

Malikane in February wrote an opinion piece for Independent Media, which publishes 15 newspapers in South Africa, in which he disagreed with the ruling African National Congress policy to transfer resources to citizens. He said: “The only sensible way in which the people as a whole can own these basic resources is through nationalization carried out by a democratic state, which is the only institution that can justly claim to represent the will of the people.”

CEO meetings

Gigaba and his deputy, Sfiso Buthelezi, who was also appointed March 31, have met with the chief executive officers of Standard Bank Group Ltd., Barclays Africa Group Ltd., Nedbank Group Ltd. and FirstRand Ltd. and assured them there would be no shift in policy, the Banking Association of South Africa said on April 5.

Gordhan’s ouster as finance minister in a cabinet reshuffle led to S&P Global Ratings and Fitch Ratings Ltd. cutting South Africa’s credit rating to sub-investment grade. Moody’s Investors Service has put its assessment of the nation’s debt, which is two levels above junk, on review for a downgrade on April 3.

© 2017 Bloomberg L.P


Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.


And what idiot at Wits granted you a professorship? What outrageous dissertation did you come up with? What persuaded you to become an adviser to a fool who is so wet behind the ears and has already stuffed up Home Affairs (visa / birth certificate nonsense) and SAA (parading himself off as a pilot)?

and finally the truth and the final picture of the “new sa” from the cabinet reshuffle is unveil, “Our chance to complete the revolution”, the destruction of all that had anything to do with “colonialism” and any “white successes”.

Malikane an economics professor at WITS), now we know why we are stuck with radical, tyre burning students, its the radical brainwashed education they receive from this so-called prof, can just imagine the lecture this guy gives, must be the only prof wearing a como suit.

Bye,bye SA, hello USSR.

Gigaba and his deputy Buthelezi “assured the CEO’s that there would be no shift in policy”, this is the first “Red flag” in any ANZ783 statement, and a straight face giveaway of an ANZ783 lei.

One can now definitely expect changes be in the banking sector.

An “economics professor” that can’t understand basic economic principles. Would like to see his follow-up advice once the economy is totally trashed. Wonder if he ever heard of countries such as Venezuela, Zimbabwe, Cuba or North Korea?

No big surprise- USSR here we come
1st: communism, strip everybody of their wealth , reduce everybody to the lowest common denominator
2nd: that is not working- hand over state assets to the olygarchs, as long as Putin gets his chop.
we already have our olygarchs- Ramaphosa sexwale zuma.etc etc
competition is bad -a western colonial disease.

Sounds like this professor is looking for a job in government.

Nationalisation can easily be pronounced but one don’t just wake up and implement it.How many native institutions Mr advisor anticipating to be nationalised in south africa. Radical Economic Transformation is on every Tom,Dick and Harry’s lips the meaning is far fetched.

End of comments.





Follow us:

Search Articles:Advanced Search
Click a Company: