EFF’s Omphile Maotwe: SA needs more robust banking policies to curb high banking charges and questionable ethics
The Economic Freedom Fighters (EFF) Member of Parliament, Omphile Maotwe, has voiced her concerns over high bank charges, questionable ethics, and the need for more robust banking policies in South Africa. Speaking on Tuesday, Maotwe did not hold back as she criticized the South African Reserve Bank (SARB), the Financial Sector Conduct Authority (FSCA), and major financial institutions for failing to serve the needs of ordinary South Africans.
The Need for Stronger Banking Policies
Maotwe expressed frustration over the role of the South African Reserve Bank, accusing it of focusing only on inflation while neglecting other critical economic concerns.
“We need true monitoring policy. We can’t have the Reserve Bank not playing a critical role. It cannot be that the Reserve Bank is only working on inflation,” she stated.
According to Maotwe, inflation control alone is not enough to address the economic struggles of South Africans, particularly the growing gap between the rich and the poor. She emphasized that without proper regulation and intervention, ordinary citizens would continue to suffer under a financial system designed to benefit banks rather than their clients.
EFF’s Call for the Nationalisation of the SA Reserve Bank
The EFF has long been advocating for the nationalisation of the South African Reserve Bank, arguing that public ownership would ensure that the institution serves the interests of all South Africans rather than private shareholders. Maotwe reiterated this stance, stating that the lack of government control over the Reserve Bank hinders economic transformation and financial inclusion.
She further pointed out that while politicians come and go every five years, institutions like the Reserve Bank remain unchanged for decades, which she believes is a major reason for the lack of meaningful transformation in the banking sector.
EFF Pushes for a State-Owned Bank
Maotwe reaffirmed the EFF’s call for the establishment of a state-owned bank, which she said would provide South Africans with a fair and accessible alternative to the country’s existing commercial banks. According to her, the current financial system is designed to enrich the banks while burdening customers with excessive fees and hidden costs.
Lack of Diversity in Banking Leadership
Another major concern Maotwe raised was the lack of diversity in banking leadership. She pointed out that all the bank CEOs present at the discussion were male, with only one of the six being African.
“How can we talk about transformation when leadership in the banking sector remains so exclusive? Where are the women? Where are the Africans?” she asked.
This, she argued, further proves that financial institutions in South Africa continue to operate in a way that excludes historically disadvantaged groups from key decision-making positions.
Criticism of High Banking Fees
Maotwe also criticized the exorbitant banking charges that South Africans are forced to pay, saying that banks continue to profit off citizens who have no choice but to use their services.
“We bank with you because we are law-abiding citizens. If we had a choice, we would not bank with you. But, I want to ask you—why are you charging us such high bank charges? Why?” she asked.
She highlighted how banks charge clients for basic transactions, such as depositing and withdrawing money, in addition to monthly fees, which she described as unnecessary and exploitative. According to Maotwe, the only real beneficiaries of the current banking system are the banks themselves, while ordinary South Africans continue to struggle with high fees and limited financial relief.
Financial Sector Conduct Authority (FSCA) Under Fire
The Financial Sector Conduct Authority (FSCA) was also in Maotwe’s firing line. She accused the regulatory body of failing to hold banks accountable, allowing them to continue operating in ways that prioritize profits over people.
Similarly, she called out the Banking Association of South Africa (BASA), saying that the organization was controlled by the banks rather than serving as an independent body looking out for consumers.
Conclusion
The EFF’s latest push for banking reforms, nationalisation of the Reserve Bank, and the creation of a state-owned bank highlights the party’s ongoing fight for economic justice in South Africa. With high banking fees, lack of transformation in leadership, and limited government oversight, Maotwe’s criticisms raise valid concerns about the accessibility and fairness of the country’s financial sector.
Whether or not the government will heed these calls for change remains to be seen, but one thing is clear—the conversation around banking reform is far from over.
