A due diligence report on the Gauteng state bank that will address current market failures amongst other things has been finalised.
Plans to establish the state bank were announced by Premier Panyaza Lesufi during his maiden State of the Province Address (SOPA) to extend access to financial services to all residents, specifically those who remain largely excluded from accessing financial services.
Addressing the media at the Legislature on Thursday, 18 July 2023, Finance MEC Jacob Mamabolo said the report has been handed over to the Gauteng Provincial Government.
“This is a major milestone that we have reached and gives the process of establishing the state bank a thumbs up.
MEC Mamabolo said they were in a better position to move to the next level to consult with the Premier and other stakeholders including the Economic Development and Labour.
“The due diligence report clears the legal hurdles and provides Gauteng with a strong legal framework towards establishing a state-owned bank. We are now in a better position to move forward knowing very well that the work that we are doing complies with the legislation,” said Mamabolo.
The state-owned bank is one of the key mechanisms that could support the growth of the township economy and increase the overall contribution of Gauteng to the country’s Gross Domestic Product.
The bank will also provide tailored products such as a streamlined, low-cost transaction product with value-added features and could expand in future to include loan products.
“We are convinced that by supporting township entrepreneurs in 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,” he said.
In addition, legal due diligence for the state-owned pharmaceutical company has also been completed.
The establishment of the pharmaceutical company will address, amongst others, institutional arrangements, supply chain management, medicine procurement, facilities, distribution of medicines to the provincial healthcare facilities, medicines inventory and dispensary to members of the public.
“We take the work of establishing both the state pharmaceutical company and the state bank very seriously. That is why we appointed Senior Counsel Adv. A. Bham SC, Senior Council Ngwako H. Maenetjie SC and Senior Counsel Adv. Michelle Leroux SC to conduct due diligence work on both the state pharmaceutical company and the state bank,” said the MEC.
By Thembisa Shologu
