SA Reserve Bank 2024/25 Annual Report (incl capacity building)

Video 2024/25 Annual Reports The Select Committee met with the South African Reserve Bank (SARB) for a briefing on capacity-building and its annual performance, during which the Bank responded to questions on gross domestic product (GDP) growth drivers, inflation and administered prices, investment constraints, global tariffs, the regulation of digital currencies, bank charges, and financial inclusion. The Bank reported on its continued financial stability, and outlined progress on deposit protection, crypto-asset regulation, and outreach initiatives to promote financial literacy. It confirmed that the inflation target remained between three and six per cent, but said that expectations were being guided towards the lower end to strengthen competitiveness and investor confidence. Based on the present information, their assessment was that the direct impact of United States tariffs on South Africa was not very large, as the bulk of exports to the US were a small subset of manufacturing and some agricultural goods, and the impact on GDP was not significant. They cautioned, however, that some of South Africa's largest trading partners were being adversely affected, meaning there would be both direct and indirect effects, which they were currently unable to fully map out. Members welcomed the update and encouraged the Bank to improve its communication on the social impact of monetary policy and to extend outreach to rural communities. The Committee requested a follow-up engagement to address outstanding questions. In the second part of the meeting, the Committee finalised its oversight visit programme to the North West Province from 20 to 24 October. The visit would assess progress on governance and audit outcomes in provincial departments and public entities, and include site inspections at key infrastructure projects.