CAPE TOWN– South Africa’s Cabinet has re-affirmed its commitment to the diversification and transformation of the country’s financial sector, says Communications Minister Nomvula Mokonyane.
Commenting on the recent announcement by the South African Reserve Bank (SARB) that it had placed VBS Mutual Bank under curatorship, Mokonyane said: The appointed curatorship will support the VBS Mutual Bank to restore its liquidity challenges and serve the interests of the public and VBS depositors.”
Briefing the media here Thursday on the outcomes of the Cabinet meeting which was held on Wednesday, the Minister also said the Cabinet had taken note of the case filed in the High Court by two non-governmental organizations regarding government’s decision to sign power purchase agreements with 27 Independent Power Producers (IPPs). The matter will be heard by the High Court on March 27.
In the spirit of constitutionalism and the rule of law, the signing has been postponed. Cabinet affirms the commitment to resolve the matters around these programmes, Mokonyane said.
The Renewable Energy IPP Procurement Programme will ensure that consumers in the country have access to cost-efficient and clean energy, and will bring much-needed investment to South Africa. These projects are expected to provide 61,600 full-time jobs, 95 per cent of them for South African citizens, specifically youth.
The Cabinet reiterated its commitment to a solid public-private partnership as the country pursues its energy transition objectives of the future and a better life for all, Mokonyane said. This is needed to bring much-needed policy and regulatory certainty, and maintain South Africa’s position as an energy investment destination of choice, she added.
She disclosed that the Cabinet had approved that the Agreement Amending Annex 1 (Co-operation on Investment) of the Southern African Development Community (SADC) Protocol on Finance and Investment (FIP) be tabled in Parliament for ratification.
The purpose of the FIP is to harmonize financial and investment policies of the 15 SADC member countries so that they are consistent with the objectives of SADC. This will ensure that any changes to financial and investment policies in one Member State does not necessitate undesirable adjustments in other Member States, Mokonyane said.
The aim of the amendments are to preserve the right of governments to regulate in the public interest and to balance the rights and obligations of investors and governments.
Source: NAM NEWS NETWORK