Potential state-owned bank excites Gauteng residents

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Some Gauteng residents have expressed their excitement about the possibility of a state-owned provincial bank, after
Gauteng Economic Development MEC Lebogang Maile‘s confirmation that he plans to prioritise the establishment of a state-owned provincial bank to advance the economic needs of the grassroots majority in the province.

This is one of the focus areas that Maile outlined as the key priority points that the province aims to focus on in the 7th administration.

Maile is adamant that a state-owned bank will serve as a great boost to the township economy and in turn help to create jobs and fight poverty.

He was addressing the media at the Gauteng Infrastructure Financing Agency (GIFA) in Sandton:

 

Maile outlines his economic plans for Gauteng, the biggest provincial economy in South Africa.

Gauteng’s GDP is just over R2.4 trillion – almost 34% of the national GDP. However, unemployment remains one of Gauteng’s biggest challenges.

“Gauteng’s unemployment rate at 33.7% is higher than the national average of 32.9%. Based on its working-age population, 4 out of 10 or 40% of people entering the labour force in South Africa are in Gauteng,” Maile says.

To change this, Maile says a state-owned provincial bank in partnership with the private sector might be the answer, as this will boost the township economy. “They say a state-owned bank might bring great relief and help small businesses to access funding.”

Maile says stringer action will be put in place to increase revenue collection, help NPOs, and create transparency and integrity in tender processes.

Meanwhile, Gauteng has yet to pave the way for municipalities that are struggling financially. Maile also assures that Gauteng will be guided by the law on how to intervene in non-ANC municipalities.