South Africa. ANC planning to use pension funds to launch state-owned bank
Reports have surfaced which reveal that the African National Congress (ANC) is working on plans to create a state-owned bank which will use pension funds to gain access to favourable rates.
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A report published by the Sunday Times on Sunday Augst 16, which revealed that the ANC has developed a recovery plan and one of the efforts involved would be an effort to invest in state infrastructure.
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Briefly.co.za learned that this would facilitate the creation of a new state bank which would use pension funds to capitalise the institution.
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The Sunday Times report exposed the proposed document which appeared in the ANC’s recovery plan which was developed during meetings held between the NEC (National Executive Committee).
“Processes, already under way, to establish a properly capitalised and governed state bank will be accelerated,” the document says – according to the national newspaper.
“The state bank will be able to access different forms of capital, in addition to taking deposits. [It] has a critical role to play in deepening financial inclusion and to further enhance competition in the banking sector.”
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