BBC to form black owned bank

Sandile Zungu
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The Black Business Council (BBC) has written to National Treasury about the formation of a black owned bank. BBC president, Sandile Zungu made the announcement during a media briefing in Johannesburg on Thursday. The briefing was intended to give a report back on the outcomes of its black business summit.

The BBC has expressed interest in buying the South African Reserve Bank’s stake in African Bank.
It’s also outlined plans to buy out commercial banks in the interest of forming a black owned bank.

The lobby group says it’s been calling for the formation of a bank of this nature since 2012. It also says it was in communication with then deputy president Cyril Ramaphosa on the prospects of establishing the bank.

Zungu says they aim to reposition African Bank to meet the needs of small, micro and medium enterprises.

“In our various engagements with the executive, we think we like the model and there’s course for it to be directed towards the SM sector and I think it can be.”

The Black Business Council has said it is not happy with the GDP figures released by Stats SA on Tuesday. Zungu says the economy should be growing in excess of 5% as outlined in the National Development Plan.

However, an unreliable supply of electricity is the biggest setback to the countries growth.

The BBC says it aims to partner with government to grow the economy. It also says it will work closely with all political parties to further their advancement of black business.