- The EFF is all set to introduce its proposed banks amendment bill in the National Assembly on Tuesday
- The proposal aims to allow for state-owned companies and entities to register to become commercial banks
- The EFF hopes this will clear the way for a state-owned national bank which the party says will benefit black people
The Economic Freedom Fighters (EFF) are all set to introduce its proposed banks amendment bill in Parliament. The proposed bill will be introduced by the EFF’s deputy-leader Floyd Shivambu in the National Assembly on Tuesday.
Shivambu will make his presentation to Parliament’s standing committee on finances at around 10:00 on Tuesday. The proposal, according to eNCA.com, aims to allow for state-owned institutions, companies or entities to register to trade as a commercial bank.
The current banks act limits which entities are permitted to register and trade as commercial banks in South Africa. The EFF’s broader aim with the amendment is the establishment of at least one state-owned national bank which the party believes will benefit black people.
Briefly.co.za gathered that EFF leader Julius Malema first told the media about his party’s plans to introduce the bill in mid-May of this year.
Malema told Citizen.co.za that the EFF’s proposal was in response to a vacuum which existed in the current banking sector. Malema said black people still largely struggled to obtain credit and a state-owned bank would help those people.
The EFF has stated that it believes a fully state-owned and controlled bank was needed to ensure that the black majority in South Africa achieved economic freedom within one generation.
The EFF has stolen a march on the ruling African National Congress (ANC) in this matter. Earlier this year President Cyril Ramaphosa admitted that the South African banking sector needed to be transformed to provide better access to financial products to a wider slice of South African society.
The ANC has on occasion voiced its support and has even adopted a resolution for the introduction of a similar amendment but has never actually tabled a proposal.
The ruling party also withdrew its proposal to nationalise the South African Reserve Bank earlier this year. The proposal, which was supported by the EFF, was criticised by opposition parties in Parliament and by the business sector.
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