The African National Congress (ANC) is the ruling political party in South Africa and is led by the Secretary General, Fikile Mbalula. His latest mission is one that could potentially have far-reaching ramifications for the South African economy. In a statement released on the official ANC twitter page, Mbalula has called for the establishment of a State Bank in South Africa. The proposed bank would be a publically funded entity and, according to Mbalula, would help to improve people’s access to financial services.

The ANC Secretary general made it clear that the proposed State Bank would be a “publicly owned financial institution”, and would ensure that financial services are available to all South African citizens, regardless of income level. In addition, Mbalula argues that a State Bank could act as an institution of fiscal responsibility, limiting the financial risks of taking on large loans and ultimately ensuring that taxpayers’ money is not abused.

However, not everyone is supportive of Mbalula’s call for a State Bank. Opposition parties such as the Democratic Alliance (DA) has argued that the lack of private sector investment in financial services should be addressed before the government considers creating a State Bank. They have also raised concerns over the potential size and scope of such an institution and whether it could actually serve the purpose it was intended for. Ultimately, the proposed State Bank could have a major impact on South Africa’s economy. It would likely increase competition in the finance sector and, depending on its set up, could ensure that underserved populations have access to financial services. However, it is still too early to tell whether such a plan is feasible and, if so, how it should be implemented.

Time will only tell if the ANC Secretary General is successful in his mission to bring back a State Bank to South Africa or it's a ploy to get people to vote for the ruling party in next year's elections. Until then, the South African public will wait in anticipation and see what the outcome is.