17 November 2004
Today's media reports show that more than 100,000 mainly unbanked South Africans have opened bank accounts through the Mzansi bank account product since it was launched on 25 October. This shows the correctness of the campaign to make banks serve the people led by the South African Communist Party (SACP)
Indeed, the concept of a universal bank account for all South Africans is a real victory for all those who have campaigned for financial institutions to serve the needs of all our people, and especially the workers and the poor.
The Mzansi account is only the first step in meeting the agreement reached at the NEDLAC Financial Sector Summit in 2002 to achieve universal access to basic financial services for every South African.
The 100,000 which has signed for Mzansi is only 1% of the more than 10 million unbanked people in our country. There are still insufficient banking points and services in many townships, informal settlements and rural districts. Even with the Mzansi account, the various banks are still imposing bank charges. The banks continue with redlining, evictions and unfair discrimination. Up to now, the financial sector has financed and supported narrow black economic empowerment for the benefit of an elite.
For these reasons, the SACP is closely monitoring the implementation of the Mzansi account. Further, this Mzansi account does not have a number of features which are essential banking services. These include mechanisms, such as debit orders, to cater for payments for other financial services such as housing and insurance while ensuring it is not used for payments to the loan sharks and mashonisas who cause our people so much suffering, and the need to improve transactional services targeted at the informal business sector, including street traders.
As the SACP, WE ALSO CALL ON THE Financial Sector Charter Council to make arrangements with the Department of Social Development so that social-grant recipients get their payments without any bank charges.
We urge millions of our people who have kept out of the banking system until now sign up for Mzansi and to report any problems to the FSCC.
CONTACT:
Mazibuko Kanyiso Jara (surname Jara)
Head of the Office of the General Secretary
South African Communist Party (SACP)
Tel: 011 339-3621/2
Fax: 011 339-4244/6880
Cell: 083 651 0271
Email: mazibuko@sacp.org.za