Cape Town – The Congress of South African Trade Unions (Cosatu) has expressed support for President Cyril Ramaphosa’s signing of the South African Postbank Amendment Act into law.
Last week, Ramaphosa officially assented the Postbank Amendment Bill which amends the Postbank Limited Act 2010, so as to adjust the establishment and the shareholding arrangements for the Postbank through the creation of a new banking controlling company.
The bank controlling company shall hold 100% shares in the Company on behalf of Government represented by the minister.
The Postbank established as a state-owned commercial bank will render financial services, banking services, lending facilities through existing infrastructure of the Post Office and any other means of delivery the Company may deem appropriate for its operational needs., a statement said.
According to Cosatu, this move sets the stage for the establishment of a State bank aimed at serving ordinary consumers, especially those who are economically disadvantaged, EWN reported.
Cosatu believes that this development will also help address the challenges faced by the struggling South African Post Office.
“We think the Post Bank can provide a useful service for the unbanked customers largely, those who live in townships and rural areas and people with no income. People who are often seen by the commercial banks for not being particularly attractive customers,” the report quoted Cosatu spokesperson Mathew Parks as saying.
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Compiled by Betha Madhomu
