Media Statement

The African National Congress (ANC) welcomes the withdrawal of the Prudential Authority’s application for the liquidation of Ithala SOC Limited following the intervention by government to ensure that depositors are repaid approximately R1.4 billion owed to them. This development reflects the importance of a responsive and caring state that places the interests of ordinary South Africans at the centre of its decisions.

The ANC recognises the historical and developmental role played by institutions such as Ithala in expanding access to financial services for communities that were historically excluded from the mainstream financial system.

Development finance institutions remain critical instruments in advancing economic transformation, supporting small businesses, promoting entrepreneurship and ensuring that working-class and vulnerable communities have access to opportunities that enable economic participation.

The ANC has always maintained that protecting strategic institutions must go hand in hand with accountability, good governance and financial sustainability. The challenges experienced by Ithala provide important lessons on the need to continuously strengthen governance systems, regulatory compliance and institutional capacity, while ensuring that entities created to serve the people are not abandoned but are supported to fulfil their developmental mandate.

The ANC welcomes the collaborative efforts by government and stakeholders to protect depositors and secure a pathway towards the future sustainability of Ithala. We remain committed to building a capable developmental state and strengthening institutions that advance inclusive growth, economic transformation and access to financial services for all South Africans, particularly those who have historically been denied such opportunities.

END//