Business Maverick

Business Maverick

South Africa’s Godongwana Rules Out Creation of a New State Bank

South Africa’s Godongwana Rules Out Creation of a New State Bank
Enoch Godongwana Photographer: Dwayne Senior/Bloomberg
By Bloomberg
24 Mar 2022
0

South African Finance Minister Enoch Godongwana ruled out the creation of a new state bank, saying the country lacked the money needed to back it. 

The government-owned Post Bank already accepts deposits and if another lender were to be established, it would have to be self-funded, Godongwana told lawmakers on Wednesday. His comments came a day after the central bank announced plans to list its stake in African Bank Holdings Ltd., which Godongwana’s predecessor, Tito Mboweni, last year suggested could be used as as a building block for a new lender.

Read: South Africa Mulls Stake in Lender as it Covets a State Bank

The South African Reserve Bank on Tuesday said it had opted for an initial public offering for African Bank after it failed to identify suitable investors to buy its 50% shareholding.

The central bank, the Government Employees Pension Fund and six of the nation’s largest commercial lenders stepped in to save African Bank with an equity injection when its owner, African Bank Investments Ltd., went into administration in 2014.

Gallery

Comments - Please in order to comment.

Top Reads This Hour

SANDF says issues of torture did not form basis of inquiry, denies existence of military ‘death squad’
Maverick News

SANDF says issues of torture did not form basis of inquiry, denies existence of military ‘death squad’
Residents advised to limit outdoor activities amidst city’s extreme air pollution, and more from around the world
Maverick Life

Residents advised to limit outdoor activities amidst city’s extreme air pollution, and more from around the world
Dan Marokane expected to be appointed as new Eskom CEO
Maverick News

Dan Marokane expected to be appointed as new Eskom CEO
SA under-19 cricket captain David Teeger cleared of any wrongdoing over Israel comments
South Africa

SA under-19 cricket captain David Teeger cleared of any wrongdoing over Israel comments
Mavuso Msimang reached a critical tipping point with the ANC — will the voters follow?
Op-eds

Mavuso Msimang reached a critical tipping point with the ANC — will the voters follow?

TOP READS IN SECTION

Dan Marokane expected to be appointed as new Eskom CEO
Maverick News

Dan Marokane expected to be appointed as new Eskom CEO
Two-pot retirement reform implementation moves to 1 September in ‘happy’ compromise
South Africa

Two-pot retirement reform implementation moves to 1 September in ‘happy’ compromise
Renewable energy producers must clear new Eskom hurdle to supply electricity to national grid
Maverick News

Renewable energy producers must clear new Eskom hurdle to supply electricity to national grid
It’s now up to government to decide on R3.8bn bailout for SA Post Office
Maverick News

It’s now up to government to decide on R3.8bn bailout for SA Post Office
ANC-aligned Johannesburg Property Company rams through a multibillion-rand property deal
Maverick News

ANC-aligned Johannesburg Property Company rams through a multibillion-rand property deal

Investigations

News & Analysis

Features

Newsletters

Community

DM168

Daily Maverick © All rights reserved

Please peer review 3 community comments before your comment can be posted

MavericKids vol 3

How can a child learn to read if they don't have a book?

81% of South African children aged 10 can't read for meaning. You can help by pre-ordering a copy of MavericKids.

For every copy sold we will donate a copy to Gift of The Givers for children in need of reading support.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options