The Gauteng Provincial Government says it is on track to establish a State Bank expected to assist businesses operated by previously disadvantaged groups.
No timelines have been set and Finance MEC Jacob Mamabolo said the province will immediately start consulting relevant stakeholders while briefing the media in Johannesburg on Thursday.
While the national government has been talking about a State Bank for years now, Mamabolo said the province is well within its rights to start one independently.
“It is envisaged that the state owned bank will address current market failures by, amongst other things, integrating small, micro, and mid-sized businesses (SMME’s) and unserved individuals in the formal financial sector and with a unique value proposition.
“It will 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.
“We are convinced that by supporting township entrepreneurs, including ensuring that they have access to tailor made financing products to expand their businesses, we will create new jobs, increase access to goods and services, and promote much-needed economic development in our communities.
“The state-owned bank is one of the key mechanisms that can support us to grow the township economy and increase the overall contribution of Gauteng to the country’s Gross Domestic Product,” he said.
While the national government has been talking about a State Bank for years now, Mamabolo said the province is well within its rights to start one independently.
