A new bank is coming to South Africa in 2024 that will be more of a formalised stokvel than a mutual or commercialised bank.
The Multi-Party Women’s Caucus (MPWC) said on Thursday that progress has been made in establishing the cooperative bank.
An update was given by the Department of Women, Youth and Persons with Disabilities (DWYPD) to the MPWC and noted that the bank will prioritise women, youth and people living with disabilities.
The bank will be called the Innovative Financial Services Cooperative (SAIFSC).
According to government, the current interim board consists of 13 youth, women and people living with disabilities from a diverse range of backgrounds.
Government noted that SAIFSC has 461 members and has a current bank balance of R278,698.85 in cash deposits.
“It has partnerships with four associations and is in the process of finalising agreements with five more, as it continues to actively seek additional membership associations,” Parliament said.
The bank charges a R500 membership fee and a non-refundable R100 administrative fee for each individual that decides to join the bank.
The bank charges companies that want to join a R1,000 membership fee and a non-refundable R100 administrative fee.
The bank has a target of trying to get 10,000 new members and R5 million in the next 12 months as soon as SAIFSC gets its approval.
The chairperson of the MPWC, Nkhensani Kate Bilankulu, said that she commended the initiative.
“It is heartening to note this intervention, as this group of individuals is vulnerable and overlooked many times. This is a positive step in the right direction,” Bilankulu noted.
CAN YOU JOIN?
During the meeting, members from the DWYPD expressed concern that individuals are unable to become members of SAIFSC unless they are part of an association in order to qualify.
MPWC said that SAIFSC is bound by regulation to operate in such a manner.
“We will closely monitor it to ensure it always puts the interest of women, youth and people with disabilities first,” Bilankulu said.
IOL NEWS has reached out to the DWYPD to get further clarity on the membership requirements but did not get feedback at the time of publication.
This is a developing story...
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