The ANC is legislating for more state behemoths — this time the creation of state-owned banks. These would apparently function alongside the existing bank structures, which according to the EFF’s populist slogans are “instruments and mechanisms of financial exclusion of the people”. Your columnist, Hanna Ziady, points out that any such additional structure is unnecessary (“SA Should Tread with Caution over Ideas of State-Owned Banks”, April 1).

There is no “exclusivity”. The shares of the banks are held by institutions and funds as well as the Public Investment Corporation, so they already represent the savings and pensions of a large portion of the population. Even when considering the financing of development, the figures from the SA Banking Association confirm their substantial investment support for transformational infrastructure, black enterprise, black agriculture and affordable housing. Any additional funding in the future could be invested through the existing struct...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now