Ramaphosa keen on state bank for South Africa

South African President Cyril Ramaphosa has announced that the establishment of a state bank in the country is on the horizon. During his recent State of the Nation Address, the President expressed his vision for a bank that would provide financial services to Small and Medium Enterprises (SMEs), with a particular focus on youth- and women-owned businesses, as well as underserved communities.

The President stated that the licensing of Postbank is crucial in laying the foundation for a state bank. The bank is currently reviewing its service offerings and is poised to provide a viable and affordable alternative to commercial banks.

Ramaphosa acknowledged that citizens often voice complaints about being rejected by commercial banks, often due to a lack of collateral. He sees the establishment of a state bank as a solution to this issue and a step towards fulfilling the ANC’s policy.

Communications Minister, Khumbudzo Ntshavheni, confirmed that plans are underway for Postbank to expand its reach with 100 new branches and a revamp of its infrastructure to become a fully-fledged bank. However, the bank is still awaiting approval from the South African Reserve Bank for a banking license, as well as the passage of the South African Postbank Amendment Bill through parliament.

The ANC has been pushing for a state bank for several years, especially after the closure of high-profile accounts at major commercial banks. A state bank would be able to earn interest from customer deposits, providing a boost to the country’s budget and funding for various projects.

In conclusion, President Ramaphosa’s announcement serves as a promising step towards the establishment of a state bank in South Africa, one that will provide financial services to underrepresented communities and alleviate the issues faced by citizens with commercial banks.