The initiative aligns with premier Panyaza Lesufi's vision, who previously introduced the idea in November 2022. Lesufi then said the state's role in economic transformation was to increase access to financial institutions for historically marginalised groups, particularly black people, youth and women.
"The idea of the Gauteng state bank is predicated on the principle of the state intervening in the economy. Specifically the idea is about the need to invest in the development of financing agencies to bring as many people as possible into the economy," said Lesufi.
Lesufi had appointed former finance MEC Jacob Mamabolo to investigate the process the provincial government needed to implement the bank. Speaking at the legislature in July 2023, Mamabolo said legal hurdles had been cleared and a legal framework established for the bank's establishment.
"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," said Mamabolo.
On social media many debated Maile's plans, while others were not confident in the move citing the looting of VBS Bank, which involved politicians and left pensioners penniless.
Some put a spotlight on the state's Postbank, which has been working towards becoming a state bank.
Here are some reactions:
Scepticism as Maile forges ahead with Gauteng's state bank plans
Gauteng finance MEC Lebogang Maile's ambitious plan to establish a provincial state bank to uplift the township economy has been met with some scepticism amid VBS Mutual Bank looting prosecutions.
"We will intensify efforts to finalise the establishment of a provincial state bank. One of the key objectives of this bank will be investing in projects characterised by low private-sector investment and high social returns," Maile said at a media briefing on Sunday.
Maile said the state bank would grow and be stable through the support of township-based enterprises.
"The number of micro and informal businesses in South Africa is around 3.3-million, with more than half of these being in Gauteng.
"Almost 20% of the country's total employment is through the township economy. The township economy is critically important because it can unlock growth, inclusion and long-term social stability. We will take measures to facilitate the provision of sustainable and suitable infrastructure," said Maile.
The initiative aligns with premier Panyaza Lesufi's vision, who previously introduced the idea in November 2022. Lesufi then said the state's role in economic transformation was to increase access to financial institutions for historically marginalised groups, particularly black people, youth and women.
"The idea of the Gauteng state bank is predicated on the principle of the state intervening in the economy. Specifically the idea is about the need to invest in the development of financing agencies to bring as many people as possible into the economy," said Lesufi.
Lesufi had appointed former finance MEC Jacob Mamabolo to investigate the process the provincial government needed to implement the bank. Speaking at the legislature in July 2023, Mamabolo said legal hurdles had been cleared and a legal framework established for the bank's establishment.
"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," said Mamabolo.
On social media many debated Maile's plans, while others were not confident in the move citing the looting of VBS Bank, which involved politicians and left pensioners penniless.
Some put a spotlight on the state's Postbank, which has been working towards becoming a state bank.
Here are some reactions:
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