Skip to content

South Africa’s Godongwana Rules Out Creation of a New State Bank

Enoch Godongwana
Enoch GodongwanaPhotographer: Dwayne Senior/Bloomberg

South African Finance Minister Enoch Godongwana ruled out the creation of a new state bank, saying the country lacked the money needed to back it. 

The government-owned Post Bank already accepts deposits and if another lender were to be established, it would have to be self-funded, Godongwana told lawmakers on Wednesday. His comments came a day after the central bank announced plans to list its stake in African Bank Holdings Ltd., which Godongwana’s predecessor, Tito Mboweni, last year suggested could be used as as a building block for a new lender.