There is no need to invent the wheel, says Ithala SOC Limited CEO Dr Thulani Vilakazi.


He said Ithala had been operating as a state bank for decades and all that was required was the official recognition.


He was commenting in the wake of a statement by Treasury that after more than a decade on the drawing board, the government has still not finalised the form its proposed state-owned bank will take.


In February, President Cyril Ramaphosa, speaking to journalists as part of a SA National Editors Forum meeting, expressed his support for a state bank.


Dr Vilakazi said there was no need to look beyond Ithala to appoint a state bank that is “tried and tested” to serve the people.


He welcomed the tough stance taken by the ANC in KwaZulu-Natal to push for the fast-tracking of the establishment of a state bank.


At its recent two-day lekgotla earlier this year, the ruling party in KwaZulu-Natal said the delays in setting up a state bank prejudiced the national democratic revolution.


Dr Vilakazi said, “As the only state-owned entity that provides full banking services, the concept of a state bank is a natural progressive step for Ithala.”


He said with its good governance and sound infrastructure, Ithala is ripe and ready to become a state bank.


“For far too long, ordinary South Africans have been left out of the transformation agenda, with historically disadvantaged people, especially in rural areas, bearing the brunt of exclusion from financial services.


“The establishment of a state-owned bank with a developmental mandate will help end the economic apartheid that defines South Africa. It will transform the financial sector and will empower historically-disadvantaged communities and accelerate radical economic transformation.


“Ithala SOC Limited – a 100% owned subsidiary of Ithala Development Finance Corporation, KwaZulu-Natal’s provincial development agency – has received overwhelming government support to achieve state bank status.


“The Premier of KZN Sihle Zikalala has long championed for Ithala to become a state bank in keeping with the ruling party’s drive for radical economic transformation,” he said.


As the pioneer in banking the unbanked sector and helping them manage their money, he said Ithala has “all the right ingredients” to become a state bank, thus enabling growth of the bank’s national footprint beyond the borders of the province


“As the only state-owned entity that provides full banking services, the concept of a state bank is a natural progressive step for Ithala.


“Banking systems must be conducive to serving the interests of everyday South Africans – a role that Ithala has long been fulfilling as a development finance institution.


“Hence, with a six-decade legacy of development, Ithala believes it is well positioned to ensure better use of public funds towards key priority areas including job creation and economic development in financially distressed rural communities.


“As an organisation which puts people before profit, Ithala would operate differently to commercial banks which invest millions of the province’s taxpayer funds outside the province as opposed to investing in sustainable development locally first.


“Against the backdrop of the triple challenges of poverty, inequality and unemployment, a state bank could earn additional revenue for the state which could help spur economic development and release vulnerable members of society from the debt trap that so many people find themselves in,” Dr Vilakazi said.


For more information visit, call 031 366 2500. Follow us on Facebook @MyIthala, Twitter @MyIthala, Instagram @MyIthala, LinkedIn Ithala SOC Limited, #RedefiningWealth #IthalaMoneyTalks #MoveToIthala #StateBank




Issued by:       Ithala SOC Limited Head Office

303 Dr Pixley KaSeme (West Street)

15th Floor Delta Towers



Brandstories Disclaimer:

Brandstories is not liable for the contents of the information published on this platform. The information which subscribers publish on this website is for general information purposes only and Brandstories facilitates the ability for viewers and subscribers to access this platform. Subscribers who publish their content on Brandstories are held responsible for their own content. This includes ensuring that it is factually accurate, grammatically correct, free of spelling errors, and does not contain unsavoury content that could result in legal action. In the case of linguistic translations, the onus is on the client to ensure that the translation is accurate. In no event does Brandstories make representations or warranties of any kind, expressed or implied about the completeness, accuracy, reliability, suitability or availability with respect to the information supplied and published. This website includes links to other websites, including third party websites. Brandstories does not recommend, endorse or support any views that are held by subscribers publishing information, and within these links provided. Furthermore, Brandstories does not have control over the nature, contents and availability of information contained on these sites. Any form of reliance readers and consumers may place on information published on Brandstories is strictly at their own risk. Brandstories makes every effort to ensure that the website is up and running smoothly at all times, however Brandstories does not take responsibility for, and will not be held liable for times when the website is temporarily unavailable due to technical glitches that are beyond our control.

Ithala SOC Limited, licensed financial services and registered credit provider, is a 100% owned subsidiary of Ithala Development Finance Corporation Limited, and is listed as a public entity in terms of Schedule 3 of the PFMA. In line with a recommendation from the South African Reserve Bank, Ithala SOC Limited was divided from Ithala Development Finance Corporation Limited in 2001 and has been operating under an exemption from the Banks Act 94 of 1990 (‘Banks Act’). The current exemption status is a temporary mechanism to enable Ithala to apply for and comply with the bank license requirements in terms of the Banks Act. Our purpose is to provide financial services to the people of KwaZulu-Natal, thereby contributing to the province’s socio-economic development. Our physical footprint spans the entire province of KwaZulu-Natal and, in some rural areas, we still remain the only financial institution with a physical presence.