Neelam Rahim | neelam@radioislam.co.za

4-minute read
16 July 2023 | 18:33 CAT

SABC News

Gauteng is on track to establish a state-owned bank and a state-owned pharmaceutical company. This was announced by Gauteng Finance MEC Jacob Mamabolo yesterday. He says that the due diligence report on the state bank has been finalized and handed over to the Gauteng Provincial Government. He described it as a major milestone.

“This is a major milestone that we have reached and gives the process of establishing the State bank a thumbs up. We are now in a better position to move to the next level to consult with the Premier and consult broadly with stakeholders including the Economic Development Department and labour,” Gauteng Finance MEC Mamabolo said on Thursday.

The report had been handed over to the Gauteng provincial government.

“The due diligence report clears the legal hurdles and provides Gauteng with a strong legal framework towards establishing a state-owned bank. We are now in a better position to move forward knowing very well that the work that we are doing complies with the legislation,” Mamabolo said.

It is envisaged that the state-owned bank will address current market failures by integrating small, micro, and mid-sized businesses (SMMEs) and unserved individuals in the formal financial sector; and drive a mission of financial inclusion and security while offering a differentiated value proposition to customers whose needs are not being met by current bank offerings.

It also aims to provide tailored products, including launching a streamlined, low-cost transaction product set with value-added features and expanding to include loan products in the future.

The State-owned bank is one of the key mechanisms that can assist in expanding the township economy and increase the overall contribution of Gauteng to South Africa’s gross domestic product.

Listen to the interview on Your World Today with Mufti Yusuf and Head of Communication and Spokesperson John Sukazi.