The Institute of Race Relations (IRR) has called on Parliament to reject the South African Reserve Bank (SARB) Amendment Bill, arguing that it is unconstitutional and economically unsound.

The bill, first introduced in 2018 by Economic Freedom Fighters leader Julius Malema, proposes the expropriation of SARB shareholders without compensation. According to the IRR, although the financial value of the shares is relatively low—around R20 million—the measure would set a precedent for wider expropriation without compensation in South Africa.

Currently, SARB shareholders receive a fixed dividend of R1,000 annually and are entitled to elect seven of the bank’s 15 directors. The IRR argues that this mixed ownership model has contributed to the bank’s ability to fulfil its constitutional mandate of keeping inflation between 3% and 6% for more than two decades.

The organisation contrasted this record with the poor performance of many state-owned enterprises under full state control. It questioned the rationale for centralising control of the Reserve Bank when government has acknowledged the need for more public–private partnerships elsewhere.

The IRR submission to Parliament also notes that, under Companies Regulation 168, reinstated entities must file outstanding annual returns, beneficial ownership declarations, and financial statements within 30 business days. Failure to do so risks deregistration once again.

The group further stated that the amendment appears to be driven by ideological objectives, pointing to the broader policy agenda of nationalising land, banks, and mines. It warned that weakening the Reserve Bank’s independence could undermine monetary stability and harm investor confidence.

The IRR urged lawmakers to vote against the bill, cautioning that its passage could damage South Africa’s economic outlook and weaken the protection of property rights.