Gauteng get closer to building Bank and Drug Company
The Gauteng Government is making significant progress towards the establishment of a state-owned bank and a state-owned pharmaceutical company.
In an announcement made by Finance MEC Jacob Mamabolo on Thursday (July 13), he confirmed that the due diligence report on the state bank has been completed and submitted to the provincial government.
“We have reached a major milestone with the completion of the due diligence report, which gives us a positive indication to proceed with establishing the state bank. We will now consult with the Premier and engage with stakeholders, including the Economic Development and labor sectors,” MEC Mamabolo stated.
The due diligence report has successfully addressed legal obstacles and provided a solid legal framework for the establishment of the state-owned bank. Mamabolo emphasized that the government can now move forward confidently, ensuring compliance with legislation.
The state-owned bank’s potential model may seek to address existing market failures by integrating small, micro, and mid-sized businesses (SMMEs) as well as underserved individuals into the formal financial sector.
Additionally, it will prioritize financial inclusion and security, offering tailored products that cater to customers’ needs which are currently unmet by existing banks.
This includes the introduction of a streamlined, low-cost transaction product with value-added features, with plans to expand its services to include loan products in the future.
“Our objective is to support township entrepreneurs by providing them access to customized financing products, allowing them to grow their businesses. This will result in job creation, increased access to goods and services, and overall economic development in our communities. The state-owned bank is a key mechanism that can help us achieve these goals and contribute to Gauteng’s Gross Domestic Product,” Mamabolo explained.
Regarding the state-owned pharmaceutical company, the legal due diligence has also been finalized, further supporting its establishment.
The proposed solution aims to address institutional arrangements, supply chain management, medicine procurement, facilities, distribution of medicines to healthcare facilities, medicines inventory, and public dispensary.
To ensure a comprehensive approach, an Advisory Panel consisting of experts in pharmaceutical and healthcare policy from both the public and private sectors has been appointed.
The panel, led by Chairperson Mr. Amos Monyela, will provide strategic guidance and advice in developing a business case for the pharmaceutical company, as well as engaging with relevant stakeholders.
“The Advisory Panel will play a crucial role in regulating and overseeing the company’s operations. They will provide valuable research and development support, disseminate accurate information on medicines, and tackle public health challenges,” Mamabolo stated.
MEC Mamabolo added that the government takes the establishment of both the state-owned pharmaceutical company and the state-owned bank seriously.
Senior Counsel Adv. A. Bham SC, Senior Counsel Ngwako H. Maenetjie SC, and Senior Counsel Adv. Michelle Leroux SC were appointed to conduct the due diligence work on both entities.
A total of R4.1 million has been spent on the due diligence reports for both institutions.
According to Mamabolo, a stakeholder consultation on the pharmaceutical company will be held soon, to be attended by MEC of Health and Wellness, Nomantu Nkomo-Ralehoko, clinicians, and Chairperson of the Advisory Panel, Mr. Amos Monyela.
With these important developments, Gauteng is poised to take significant strides towards enhancing economic opportunities and improving access to crucial financial and healthcare services for its residents.