Pretoria: SOUTH Africa’s opposition Democratic Alliance (DA) has vowed to oppose plans to nationalise banks, describing it as a bad idea.
The radical Economic Freedom Fighters (EFF) and the ruling African National Congress are pushing for the nationalisation of banks and land grabs without compensation.
The EFF’s memorandum for the establishment of a “state bank” has been published in the government gazette. The draft Bill is yet to be tabled.
“The DA stands ready to oppose a proposal by the EFF to establish a “state bank”, not only because it is a bad idea but also because it is in effect a “dead duck” which will do nothing to help the unbanked whom it purports to serve,” the DA said in a statement.
“Ten years ago, the ANC Youth League Congress at Nasrec called for a state bank which will ‘deal with the financing of developmental programmes such as housing, transport, infrastructure, and new industries’. This is a redundant call because development finance institutions such as the Industrial Development Corporation, the Development Bank of South Africa, and the Land Bank already exist.”
