Government of South Africa

2023 - 1 - 9

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Image courtesy of "BusinessTech"

Government ready to launch state bank for South Africa (BusinessTech)

Minister of Communications Khumbudzo Ntshavheni says that the Postbank is ready to take up the role of a state bank in South Africa, with plans underway to ...

Of particular interest is the fact that a state bank would be able to earn interest off customer deposits, which could bolster the country’s coffers and fund various projects. Despite this, the ANC has kept the plan in its back pocket. Red flags were also raised about cybersecurity and its overreliance on the Post Office, which is itself in dire financial straits. It is also waiting for approval from the South African Reserve Bank for a banking licence. “Currently, they (Postbank) operate at the Post Office, and there is no proper banking infrastructure. It would allow for the shareholding of Postbank to be transferred from the South African Post Office (SAPO) to the government and allow for the setting up of a Bank Controlling Company (BCC) – a holding company for the bank.

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Image courtesy of "Eyewitness News"

Post Bank ready to become a state bank, says Ntshavheni (Eyewitness News)

Ntshavheni said the Post Bank had to separate from the SA Post Office because it was not financially equipped to own a banking service.

Ntshavheni said the Post Bank had to separate from the SA Post Office because it was not financially equipped to own a banking service. She said the Post Office was not technologically suitable for the Post Bank to acquire a banking licence, and right now the bank was trying to meet the South African Reserve Bank's requirements for initiating a national banking system.

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