The emphasis placed by KwaZulu-Natal Premier Thamsanqa Ntuli on township and rural economies contributing to socio-economic transformation has been welcomed by Ithala SOC Limited.

Delivering the State of the Province address in Pietermaritzburg, Premier Ntuli said  the economy is in “a low-growth trap”, with average growth lagging behind population growth, leading to a regression in real Gross Domestic Product (GDP).

“This impact is felt most acutely by the youth and women. As part of rebuilding the economy, we will collaborate with the provincial public entities in terms of their mandate, in growing and transforming the province's economy.

“In the coming days, we will hold high-level discussions with their leadership, including the Boards and Executive Management,” Premier Ntuli said.

Ithala was established as an entity of the KZN Government to provide financial services to the people of KZN, thereby contributing to the province’s socio-economic development. Ithala’s physical footprint spans the entire province, and in some rural areas it is the only financial institution with a physical presence.

Premier Ntuli said: “As we restructure our economy, we will have ongoing discussions regarding the role of key economic institutions, such as the Growth Fund; Ithala Development Finance Corporation; Trade and Investment KwaZulu-Natal; Agri-Business Development Agency; Richards Bay Industrial Development Zone and the Dube TradePort Corporation in relation to the employment impact of policy decisions.

“The State-Owned Entities will be engaged as they are the drivers of economic growth of the province.

“Economic transformation and inclusive growth remain key economic growth and development pillars. We will pay deliberate attention to the development of small, youth, and women-owned businesses through partnerships and incubation.

“The township and rural economies are important elements of socio-economic transformation. It cannot be that our people in townships and rural areas are robbed of these opportunities,” Premier Ntuli said.

Ithala CEO Dr Thulani Vilakazi said Ithala will stand fully behind the Premier’s programme to re-energise the economy of KwaZulu-Natal.

“The government set up Ithala to mobilise financial resources and to provide financial and supportive services to the people of KwaZulu-Natal, especially the poorest of the poor in deep rural areas.

“In this regard Ithala has admirably fulfilled its mandate. For over two decades, Ithala has been a catalyst for building an inclusive economy, creating wealth, and transforming people's lives.

“Presently Ithala is experiencing challenges with regard to operating under exemption and it is hoped that with the support of the Premier and the MEC for Economic Development, Tourism and Environmental Affairs, Reverand Musa Zondi, this matter can be resolved with the Prudential Authority to allow Ithala to provide the full bouquet of financial services to its huge customer base, especially in rural areas.

“We believe that a bank should be a catalyst for building an inclusive economy, creating wealth, and transforming people's lives. This is a role Ithala has played over two decades, and it is the role we will continue to play to transform people's lives,” said Dr Thulani. https://www.myithala.co.za/?wix-vod-comp-id=comp-kcknk4c7