Gauteng finance MEC Lebogang Maile's ambitious plan to establish a provincial state bank to uplift the township economy has been met with some scepticism amid VBS Mutual Bank looting prosecutions. 'We will intensify efforts to finalise the establishment of a provincial state bank. One of the key objectives of this bank will be investing in projects characterised by low private-sector investment and high social returns,' Maile said at a media briefing on Sunday.
Maile said the state bank would grow and be stable through the support of township-based enterprises.
'The number of micro and informal businesses in South Africa is around 3.3-million, with more than half of these being in Gauteng.
'Almost 20 of the country's total employment is through the township economy. The township economy is critically important because it can unlock growth, inclusion and long-term social stability. We will take measures to facilitate the provision of sustainable and suitable infrastructure,' said Maile.
Lebogang Maile on Twitter / XThe initiative aligns with premier Panyaza Lesufi's vision, who previously introduced the idea in November 2022. Lesufi then said the state's role in economic transformation was to increase access to financial institutions for historically marginalised groups, particularly black people, youth and women.
