The SARB is unusual because it has private shareholders while operating as South Africa's central bank, which can easily create the impression that shareholders somehow control the Bank. They don't. Shareholders have limited rights, including reviewing the Bank's annual financial statements, electing seven non-executive directors when vacancies arise, and appointing the Bank's external auditors — they do not determine interest rates, monetary policy, financial-stability policy, or financial-sector regulation. For ordinary South Africans, the important point is that decisions about monetary policy and interest rates are made through the SARB's formal monetary-policy structures, not by its shareholders.
Source: South African Reserve Bank
Frequently Asked Questions
Can SARB shareholders decide whether interest rates go up or down?
No. SARB shareholders have no role in determining monetary policy or setting the policy rate.
Why does the Reserve Bank have private shareholders?
The SARB has had private shareholders since its establishment. Its shareholder structure is part of its historical legal structure and does not make it equivalent to an ordinary privately controlled company.
What can SARB shareholders actually do?
Their rights include participating in certain shareholder matters, such as electing specified non-executive directors and appointing external auditors. Their rights do not extend to controlling monetary policy.