The African National Congress in Limpopo has called on the provincial government to establish a pro-poor bank because poor people struggle to secure finance at major banks.<\/p>\n
“We think we must establish a provincial bank, it has been a long-standing issue at national, and it was affirmed by the national lekgotla that we need a state bank to make sure that our poor communities are covered,” said party provincial secretary Knocks Seabi.<\/p>\n
Seabi said the big four banks’ conditions to secure loans favour the urban rich.<\/p>\n
“If we have a provincial bank it will be easy for our people to access financial assistance, it is difficult to go to the four main banks: Absa, FNB, Standard Bank and Nedbank,” he said.<\/p>\n
This comes weeks after Co-operative Governance Minister Des Van Rooyen called for the establishment of a local bank.<\/p>\n
Seabi said major banks marginalise poor communities even further.<\/p>\n
Lobbying denied<\/strong><\/p>\n Members of the ANC Youth League have recently launched a campaign against Absa demanding that the bank pay back money it was given as a bailout by the apartheid government two decades ago.<\/p>\n VBS Mutual Bank, whose operations made news headlines after it offered President Jacob Zuma a loan to pay his Nkandla bill, is Limpopo’s only provincial bank.<\/p>\n Asked if the decision was influenced by Van Rooyen’s call made during a recent provincial water summit, Seabi vehemently denied and argued that the matter was discussed at an ANC meeting.<\/p>\n “The minister did not lobby us. Maybe because we belong to same ANC we are of the same mind.”<\/p>\n However, Seabi failed to outline how the bank will be established, funded and operated differently from other banks.<\/p>\n He said a study would be conducted to determine this.<\/p>\n