Communication - Press

South African Postbank Amendment Act Signals New Era for Banking Landscape 

President Cyril Ramaphosa has ushered in a significant development in South Africa's financial sector with the enactment of the South African Postbank Amendment Act.   

The legislation, set to take effect on February 19, 2024, marks a pivotal moment as it facilitates the transition of Postbank's ownership from the South African Post Office to the government. 

 Initially signed into law by President Ramaphosa in September 2023, the Postbank Amendment Act formalizes the transfer of Postbank's shareholding to the state, enabling the creation of a Bank Controlling Company.  

 This move effectively separates Postbank from the embattled South African Post Office and sets the stage for the establishment of a fully-fledged state-owned banking operation. 

Postbank, traditionally confined to offering limited savings services through the Post Office, will now have the autonomy to expand its offerings to include transactional accounts, credit facilities, and other banking services.  

With its newfound independence, Postbank can pursue a new banking license from the South African Reserve Bank and commence full-scale banking operations. 

While Postbank acknowledges the competitive nature of the banking industry, particularly with established players like Absa, FNB, Standard Bank, Capitec, and Nedbank, the institution remains steadfast in its commitment to providing accessible financial services.  

 The bank's primary objective is to cater to underserved communities, small and medium-sized enterprises (SMEs), and the public sector. 

 Read more here.