South Africa Post Office gets Permission from the SA Reserve Bank to Launch its Own Bank

Reserve BankThe South African Reserve Bank has granted license to the Post Office allowing it to corporatize its bank division.

The license will allow Postbank to offer more than just savings accounts. It will now be able to offer banking cards and other services. To permit it operate as a full- fledged bank, the Postbank will be re-registered as a new company.

Siyabonga Cwele, the Telecommunications and Postal Services Minister said that the process is yet not completed completely. According to the officials, it might take another one year for the licensing process to be completed. "The next step is to approach the board and we think that we can do that quickly then we have to raise a new company."

In another instance, the SA Post Office (SAPO) raised R3.7 billion from local financial institutions that will help the cash-strapped state enterprise to make a turn around and pay salaries as well as clear the amount of R900 million it owed to the suppliers.

Siyabonga Cwele said an amount of R1 billion was raised some months back when the organization went to raise capitals from the market using its government guarantee. Another R2 billion cash boost was received recently.