Mboweni’s call for a state bank gets tongues wagging

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Former finance minister Tito Mboweni’s call for a state bank has sparked debate, with many claiming he should have helped make it a reality during his time in office.

Mboweni has shared several ideas for economic reform since he left President Cyril Ramaphosa’s cabinet last year. 

Taking to Twitter this week, Mboweni said a state bank is needed for economic transformation to take place.

“Economic transformation is not going to happen in SA without a state bank. The current banking and finance system is not geared for transformation. We need a disruption. A state bank. Without access to finance capital, we are in a breakfast picnic.”

While some agreed, others questioned his argument and said a change of government is needed.

Many asked what he had done in his time as finance minister to help with the creation of a state bank.

“Obviously you’re not genuine about this, minister. You had an opportunity to establish a state-owned bank using African Bank as a nucleus,” EFF deputy president Floyd Shivambu said in response to Mboweni’s comments.

Shivambu said a state bank is “necessary and long overdue”, and hoped Mboweni was not making the call to “pressurise potential deal financiers to close a deal”.