South Africa: A Tangled Web, ANC Edition - the Reserve Bank and 'Quantity Easing' Mess Reveals a Party in Deep Internal Crisis

Left: ANC Secretary General Ace Magashule. RIght: Finance Minister Tito Mboweni.
analysis

The very public slapping down of Ace Magashule by, among others, Tito Mboweni and Enoch Godongwana is yet another expression of just how comprehensively the ANC is divided. You know things are bad when so many in the party line up to display contempt for the person of the secretary-general, a nigh-impossible feat during Gwede Mantashe's time.

On Wednesday morning, 5 June 2019, the divisions in the ANC on economic policy, and particularly on the mandate of the Reserve Bank, were back on display. This time they were more public than before, and thus more damaging to the economy and the currency.

The argument was sparked by the ANC's secretary-general, Ace Magashule, saying that the National Executive Committee lekgotla had resolved to change the mandate of the Reserve Bank with regard to inflation targeting.

Almost all of this has happened before, and the ANC has a long history of public debates about this. But this time, it seems something may have shifted. However, in the longer run, the only way that the mandate can be changed is through the finance minister. And Twitter's favourite chef is likely to remain unmoved in the face of calls for him to allow the...

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