SA doesn’t need state-owned bank, BUSINESS DAY, Companies & Markets
SA doesn't need state-owned bank, BUSINESS DAY, Companies & Markets
THE idea of a state bank is like a zombie that keeps coming back from the dead. The Gauteng ANC's conference last weekend resolved to set up a task team to investigate the creation of one. This is nothing new. Minister of Economic Development,Ebrahim Patel, proposed the same thing back in 2010. The problem with the idea is that upon investigation you quickly realise that the issues that need to be solved won't be solved that way. The government is already the biggest financial services provider in SA. It counts among its institutions the largest fund manager (Public Investment Corporation), the largest retail bank branch network (Post Bank's 1,400 branches), the biggest infrastructure funder (Development Bank of Southern Africa), the biggest industrial development funder (Industrial Development Corporation) and the Land Bank. It also has major business funders like the National Empowerment Fund and the Small Enterprise Finance Agency. Both of these last two were specifically designed to fund black entrepreneurs.
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