Ramaphosa wants state bank

DEPUTY President Cyril Ramaphosa has joined calls for the creation of a state bank to fund entrepreneurs.

At the weekend, the ANC in Gauteng resolved to lobby for the creation of a state bank to fund black industrialists.

Ramaphosa's remarks are a strong endorsement of the bank's establishment.

"We want to push ahead with a state bank to assist entrepreneurs with funding," Ramaphosa said.

He was speaking at a township economic revitalisation summit at Soweto's Orlando Stadium on Tuesday at the invitation of Gauteng Premier David Makhura.

Ramaphosa said the idea of a state bank was in response to the need for a key role player to fund emerging businesses.

"The good thing about [the state bank] is that people are not asking for handouts. They are merely saying create avenues‚ give us loans to help us develop‚" he said.

The push for a state bank within the ANC is not new and the party's Gauteng structure resolved at the weekend to lobby the party's National General Council for its establishment next year.

While institutions with similar mandates already exist – including the Industrial Development Corporation – the ANC would like to see a professional, state-owned bank kick-start the growth of black industrialisation in South Africa".

Ramaphosa told about 1200 business owners that the government would support those aspiring to manufacture goods in townships and sell them to markets in other countries.

The government wanted to cut red tape and roll out the red carpet to allow their businesses to grow‚ and ultimately pay rates and taxes, he said.

"What the province is seeking to do here is going to give meaning to what the national government has been saying. Gauteng will give it more meaning by implementing it in townships‚" Ramaphosa said.

His comments come as the Gauteng provincial government is working to foster township-based businesses.

Makhura said the provincial government would invest R160million in upgrading the infrastructure needed by township businesses to grow.

Gauteng was hoping to double the size of its economy to R2-trillion by 2030‚ with 32% of the growth coming from townships.

The state had resolved to spend a minimum of 75% of the R100-billion allocated for goods and services on goods procured from domestic providers‚ Makhura said. - Khulekani Magubane