PRESIDENT Cyril Ramaphosa says that the licensing of the Postbank will lay the groundwork for a state bank.
Speaking in his State of the Nation Address on Thursday, the president said that a state bank in the country would provide financial services to SMMEs, particularly the youth- and women-owned businesses and “other underserved communities.”
Ramaphosa said that while the National Assembly considers the Postbank amendment bill, the Postbank is reviewing its service offerings.
The bank aims to provide a viable and affordable alternative to commercial banks.
Ramaphosa said that government often receives complaints from citizens who are rejected by commercial banks – for reasons such as a lack of collateral.
While details and exact timelines for the state bank remain scarce, the president’s address reiterated and doubled down on ANC policy surrounding the establishment of the bank.
Last month, Minister of Communications Khumbudzo Ntshavheni said that plans were underway for Postbank to roll out 100 new branches and revamp the group’s infrastructure to become a fully-fledged bank.
“Currently, they (Postbank) operate at the Post Office, and there is no proper banking infrastructure. Banks operate at a different level, so they must put in the necessary infrastructure – when the (banking) licence comes in, then the bank will be readily available,” Ntshavheni said.
PostBank is still waiting for the South African Postbank Amendment Bill, which was tabled in May 2022, to make its way through parliament. The amendment will make changes to the South African Postbank Limited Act, allowing it to function as a separate entity from the Post Office.
The Postbank is also awaiting approval from the South African Reserve bank for a banking license.
Until the bill makes its way through the National Assembly, the Postbank will continue to operate as a subsidiary of the Post Office and may only offer transactional and savings accounts.
Although there are moves to make the Postbank a state-owned bank, Ntshavheni said that it was a completely separate endeavour from the ANC’s push for a new state bank in South Africa.
The ANC has pushed for a state bank over recent years, especially after the closure of high-profile accounts at the nation’s major commercial banks.
A state bank would be able to earn interest off customer deposits, boosting the country’s budget and allowing for funding of various projects.
Business Tech
