SOUTH AFRICAN
RESERVE BANK
ANNUAL REPORT
2019/20

THIS ANNUAL REPORT


The 2019/20 South African Reserve Bank Annual Report, for the year ended 31 March 2020, provides an assessment of the SARB’s ability to sustainably implement its mandate.


About this report

ABOUT THE SOUTH AFRICAN RESERVE BANK (THE SARB)


The SARB’s mission is based on its constitutional mandate to protect the value of the currency in the interest of balanced and sustainable economic growth. The SARB’s independence is enshrined in the Constitution of the Republic of South Africa, and the SARB appreciates that this independence creates a duty to be transparent and accountable to its stakeholders.


What the SARB does

GOVERNOR’S MESSAGE

The 2019/20 SARB Annual Report is presented at a time when the world is faced with what the United Nations has termed ‘humanity’s worst crisis’, brought about by the coronavirus disease 2019 (COVID-19) pandemic.

E L (Lesetja) Kganyago

2019/20 PERFORMANCE HIGHLIGHTS

AVERAGE HEADLINE INFLATION 
4.2%
with inflation remaining firmly within the 3–6% target range.
FINANCIAL STABILITY 
 
Continued to strengthen the financial stability framework.
There were no failures of systemically important financial institutions.
RESERVES 
 
 
R6.1 billion
of SARB profit transferred to the contingency reserve and R32 million to the statutory reserve, in line with the SARB Act, to rebuild reserves.
CURRENCY-PRODUCING SUBSIDIARIES
100%
of notes and coin orders fulfilled effectively and within agreed timelines.

THE SARB’S MANDATE

PRIMARY
MANDATE
Achieve and maintain price stability – this protects the value of the currency in the interest of balanced and sustainable economic growth and contributes to the stability of the entire financial system.
KEY OBJECTIVE
Maintain the Consumer Price Index (CPI) inflation within a target of
PRIMARY OUTCOME
Low and stable inflation that protects the purchasing power and living standards of all South Africans.
STATUTORY MANDATE
Protect and enhance financial stability in South Africa – this includes strengthening the safety, soundness and integrity of financial institutions through the Prudential Authority.
KEY OBJECTIVES
Mitigate risks to financial stability.
Restore or maintain financial stability if a systemic event occurs or is imminent (for example the COVID-19 pandemic).
Harmonise and integrate the prudential regulation and supervision of financial institutions and market infrastructures.
Monitor the financial system.
PRIMARY OUTCOME
A stable and safe financial system that provides the foundation for sustainable economic growth and development, and in turn, employment creation.
Why price stability matters

Read about how the SARB manages inflation.

Report on monetary policy

Read overviews of the world and domestic economies, inflation dynamics and the decisions of the Monetary Policy Committee.

Report on financial stability

Read about the risks to financial stability, the resilience of the South African banking sector and how the SARB is preparing for its role as a resolution authority.

Report of the Prudential Authority

Read about the progress made by the Prudential Authority against its regulatory strategy and other priorities.

SARB’S RESPONSE
TO COVID-19

The outbreak of COVID-19, and the measures taken to contain its spread, are having wide-ranging and deep social and economic impacts globally and in South Africa.

The SARB is using monetary policy, financial market operations and its regulatory tools to contribute towards the continued smooth functioning of the country’s financial sector and the stability of its financial system.

SARB’s response to COVID-19

THE SARB’S STRATEGIC PLAN

The SARB’s 2025 strategic plan is designed to achieve its mandate – price and financial stability – and additional priorities assigned to the SARB by diverse legislation. The five strategic focus areas (SFAs) are the prioritised outcomes the SARB considers essential to achieving its mandate.

SFA
1
Maintain
headline inflation within the target range
SFA
2
Protect
and enhance financial stability
SFA
3
Promote
and enhance the safety, soundness and integrity of regulated financial institutions and market infrastructures
SFA
4
Enhance
South Africa’s resilience to external shocks
SFA
5
Ensure
cost effective availability and integrity of currency
The 2025 strategic plan

Read about the SARB’s new strategic plan to 2025, covering its business strategy and enablement objectives.

Progress against the 2020
strategic plan

View the progress made by the SARB during the year against its strategic objectives, as well as its cross-cutting objectives and building blocks that underpin the strategic plan.

Related information
Financial statements

Full annual financial statements of the SARB Group.

AGM minutes

Minutes of the 99th annual Ordinary General Meeting of the shareholders of the SARB.