AS Independent Media faces the real risk of shutting down if the Equality Court rules against it in a case brought against Standard Bank shutting down accounts, there may be a glimmer of hope as some in the ANC KwaZulu-Natal leadership are in support of the establishment of state bank as an alternative.
The support of the creation of a state bank was highlighted during an ANC state bank workshop held in Durban in June.
After the Competition Appeal Tribunal had ruled against Sekunjalo Investment Holdings (SIH), the group, whose chairman Dr Iqbal Survé has previously called for the establishment of a state bank, as its fate is in the hands of the Equality Court which is expected to make its ruling on Tuesday.
The court ruling would determine whether or not Independent Media and related companies who bank with the Standard Bank would continue to exist.
Also supporting the idea of the state-owned financial institution was the taxi industry whose members felt discriminated against when approaching commercial banks for financial support to enhance their businesses.
ANC secretary-general Fikile Mbalula had told workshop delegates that on his recent visit to China, he learnt that the party should continue with its transformative development resolutions, such as the establishment of the state bank, despite changes in its leadership.
Under the stewardship of former president Jacob Zuma, the ANC took resolutions to transform the country’s economy, including establishing a state bank, for the benefit of the economically sidelined black population.
Mbalula felt that under its current President Cyril Ramaphosa, the party should implement such resolutions.
“The government must move with speed in implementing the resolution on the state bank, including finding a way to capitalise the bank.
“The overall project of transformation of the country rests on building a capable state that leverages key economic sectors, (and) accordingly the financial service sector is one of such vital economic levers that requires strategic state attention,” he said.
Mbalula also wants the state bank to cater for small, medium and micro-sized enterprises (SMMEs), women and youth-owned enterprises. “It must also include transformative and diverse allocation of capital from banks along race and gender.”
KwaZulu-Natal ANC provincial secretary Bheki Mtolo, who accompanied Mbalula to China, had during the workshop been critical of state-owned institutions, saying their incompetency to deliver services was discouraging and pushing clients to the private sector.
“Everyone is looking at the state bank and saying I support it, Nedbank (an example) is saying I support this idea but deep inside it is saying it won’t work. It is saying it won’t compete with us,” Mtolo said.
He said the issue of efficiency in the state-owned entities was a critical issue that the ANC should face and deal with.
“Even you inside here, if you want to buy houses you will go to a state bank, and the state bank will take two months. You come to us (commercial banks), and in three days we give you the loan, (then) Nedbank (an example) knows that you won’t use the state bank,” he said.
Mtolo made an example of the Land Bank, which he said had already chased away more than 70 farmers due to its underperformance. The farmers had now found alternative business deals at Standard Bank “because you go to these guys (Land Bank), and they will give you a loan six months or seven months later”.
“Then they (farmers) just walk to Standard Bank, and in three days the loan is approved, if it is declined it is declined, at least you know your position. Now you apply (to Land Bank), you want to do planting around August, you will only get the loan (from Land Bank) in January or the end of October, which is too late,” Mtolo said.
The SA National Taxi Council (Santaco) used the same workshop to call for the establishment of a state-owned bank.
Santaco representative Sizwe Mvubu said the taxi operators would only support the establishment of a state-owned bank if it pledges to rescue them from the ill-treatment they suffer at the hands of the major commercial banks whose interest rates have drowned them in financial crisis.
“You buy a Quantum which costs R500 000 but ends up paying R900 000. We are victims of interest rates from the Western banks,” Mvubu said. “It would be important if the state bank can add value in the business that we do (as) in our industry as we are not enjoying economic freedom.”
He said taxi operators are currently surviving by raising money to pay instalments through stokvels, which are informal and not recognised in the financial sector.