The DA opposes the ANC’s State Bank proposal as delivered vicariously by the EFF
30 April 2018
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 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 but past EFF communication on the idea of a state bank, which closely mirrors that of the ANC, has shown the idea to be financially incoherent, hypocritical, redundant and thus doomed to fail.
The EFF’s fantasy is such that they are not interested in a financially sustainable ‘state bank’ but one which will, as stated in one of their policy documents, “provide enterprise finance, housing finance and vehicle finance for all South Africans in a manner that promotes development, not the narrow pursuit of profits.”
With more South Africans dependent on social grants than there are in employment, the EFF’s Bill will propose to have a population both indebted and dependent on the government.