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The Constitution of the Republic of South Africa gives the South African Reserve Bank (SARB) a clear mandate – to pursue and maintain price stability in the interest of balanced and sustainable economic growth.
The SARB Annual Report for the year ended 31 March 2024 outlines how the SARB has gone about delivering on its mandate and offers readers a concise, transparent account of the SARB’s strategy, performance and impact on society, focusing on both financial and non-financial information.
The SARB Annual Report for the year ended 31 March 2024 outlines how the SARB has gone about delivering on its mandate and offers readers a concise, transparent account of the SARB’s strategy, performance and impact on society, focusing on both financial and non-financial information.
Governor’s message
Reflecting on the past year, global conditions remain strained and inflation has been higher than expected. Interest rates have likewise stayed high and the dollar remains strong, to the detriment of most other currencies including the rand. Geopolitical tensions have intensified, with conflict spreading in the Middle East. These are difficult circumstances for South Africa and other emerging markets.
The past year has also featured serious domestic challenges. Last year’s electricity load-shedding was the worst on record. We also saw major disruptions to port and rail infrastructure. In these circumstances, the economy grew just 0.6%, one of the slowest growth rates in our modern history.
The SARB maintains price stability in the interest of balanced and sustainable economic growth. The SARB is also tasked with protecting and enhancing financial stability; regulating and supervising financial institutions; issuing and destroying banknotes; and acting as banker to the government, lender of last resort and the designated Resolution Authority in terms of the Financial Sector Regulation Act 9 of 2017, as amended (FSR Act). It is also the custodian of the national payment system (NPS), which is crucial to the functioning of South Africa’s economy.
The SARB’s strategy is formulated to fulfil its price and financial stability mandates and the additional priorities that various laws assign to the organisation. This strategy is articulated through five strategic focus areas (SFAs) that the SARB considers essential in achieving its mandate. This is supported by five enablement focus areas (EFAs) that drive the strategy’s execution.
The SARB supports the overarching goals of King IVTM Report on Corporate Governance for South Africa, 2016 and has implemented the principles of responsibility, accountability, fairness and appropriate transparency, in line with legislation governing the SARB.
The South African Reserve Bank Act 90 of 1989, as amended (SARB Act) requires its Board of Directors to have 15 members, comprising the Governor and three Deputy Governors who serve as executive directors, as well as four non-executive directors appointed by the President of the Republic of South Africa – after consultation with the Minister of Finance – and seven shareholder-elected, non-executive directors. Neither the Board nor the SARB’s shareholders play any role in determining monetary policy, financial stability policy or regulation and supervision of the financial sector.
The operations of the SARB continue to evolve in an economic landscape and financial system that are changing rapidly and becoming more complex. These changes present both risks and opportunities for the SARB as it executes its price and financial stability mandates. Operationally, the SARB is exposed to significant inherent risks in many of its core functions. These risks include strategic, policy process and operational risks – such as business continuity, cybersecurity, information security and compliance – as well as reputational, project and financial risks.
Monetary policy in a world of high inflation
Read more about international and domestic economic developments, inflation dynamics and monetary policy decision making.
Maintaining financial stability
Read more about the SARB’s assessment of financial stability and the resilience of the domestic financial system.
Protecting depositors
Read more about the Corporation for Deposit Insurance (CODI), established to help protect vulnerable bank depositors and bolster confidence in the financial system.
Transforming payments
Read more about the SARB’s work to transform the national payment system.
People matters
Read more about how the SARB strives to remain an employer of choice through developing, attracting and retaining skilled and capable staff.
Information and technology
Read more about how transformational I&T projects are enhancing the SARB’s business capabilities and its ability to deliver on its strategy.
Investing in society
Read more about how the SARB is improving the lives of South Africans from disadvantaged communities, broadening the understanding of monetary policy and developing skills in the fields of monetary policy and financial journalism.
Purposeful procurement
Read more about the SARB’s procurement strategy, which focuses on the timely delivery of goods and services in a manner that is fair, equitable, transparent, competitive and cost-effective.
