Gauteng govt given green light to establish state-owned bank
The Gauteng provincial government has received the green light to establish its own state-owned bank.
Finance MEC Jacob Mamabolo briefed the media in the Gauteng legislature on Thursday to provide an update on establishing a state-owned bank and a state-owned pharmaceutical company.
Mamabolo received the due diligence report on the state-owned bank.
“The due diligence reports clear 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.”
Mamabolo said his department will now consult with Gauteng Premier Panyaza Lesufi, the Health Department and various stakeholders.
“We are now in a better position to move to the next level to consult broadly with stakeholders, including (the Department of) Economic Development and Labour.”
Mamabolo has also admitted that the bank is being established at a very difficult period, taking into consideration the province's balance sheet.
"As a province, we will have to look at how to finance and support this. The money at our disposal will help us to make a determination."
The province has thus far spent R4 million on consultations for the bank and pharmaceutical company.
Finance MEC Jacob Mamobolo is this morning briefing the media on the province’s plans to establish a state owned bank and state owned pharmaceutical company.
— Jacaranda News (@JacaNews) July 13, 2023
Mamabolo says the state owned bank will create an “ecosystem” that will support businesses in the township. pic.twitter.com/UHjlsmTBLs
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