The Gauteng provincial government held a media briefing in Johannesburg on Thursday to share a comprehensive legal due diligence report regarding its proposed establishment of a state-owned bank. The government aims to address the financial needs of township residents who often struggle to receive support from traditional financial institutions as reported by Eyewitness News.
Prepared by Malatji and Co Attorneys, the report confirms that no legal barriers are preventing the Gauteng government from creating its own bank. The Gauteng Treasury Department has allocated R4 million to research the legal feasibility of establishing a state-owned bank and a pharmaceutical company.
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Finance MEC Jacob Mamabolo emphasised that these initiatives’ potential return on investment would be significant. Mamabolo expressed concern over the limited access to credit lines faced by residents in township and rural areas, stating that the lack of trust from banks has hindered the development of these regions.
Mamabolo stressed the importance of deliberate action by the provincial government in supporting township development through a dedicated bank and financial resources. He highlighted the need to expedite progress to ensure townships reach their desired state of growth.
The next step involves sending the legal, due diligence reports for peer review by academic experts at Unisa, further advancing the government’s commitment to thorough assessment and preparation.
Jacob Mamabolo, Gauteng Finance MEC, is set to brief the media on the provincial government’s progress in establishing a state-owned bank and pharmaceutical company.
These initiatives were first announced by Panyaza Lesufi, Gauteng Premier, during his 2023 SOPA speech. TCG pic.twitter.com/j7GD2K0REx
— EWN Reporter (@ewnreporter) July 13, 2023
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