The banks must be forced to serve all South Africans, not just the privileged few, says the writer
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By Sipho Tshabalala
South Africa’s banks are not just financial institutions — they are gatekeepers of economic power, deliberately locking black South Africans out of financial prosperity.
When Bongi Kunene, managing director of The Banking Association of South Africa, stood before Parliament, she painted a deceptive picture of banking transformation.
What she didn’t say is that during the biggest economic crisis in recent history, banks actively chose to sabotage black businesses.
The government made R200 billion available through the Covid-19 Loan Guarantee Scheme. It was a lifeline meant to keep businesses afloat during the pandemic.
Instead, banks hoarded the funds, deliberately obstructing access for black entrepreneurs while favouring their usual white clientele.
The commercial banks — Absa, Bidvest Bank, First National Bank, Grindrod Bank, Investec, Mercantile Bank, Nedbank, SASFIN Bank, and Standard Bank — proved once again that their commitment to transformation is a lie.
Former finance minister Tito Mboweni did not mince words: “it was South Africa’s banks that killed the government’s Covid-19 Loan Guarantee Scheme.”
Even President Cyril Ramaphosa tried to intervene, and the banks arrogantly ignored him. Why? Because they knew they could get away with it. Despite a 94% government-backed risk absorption, banks refused to lend. Their excuse? The South African Reserve Bank (SARB) required them to apply their usual racist risk assessments.
Let’s be clear — South African banks have never assessed risk objectively. In their world, black entrepreneurs are always too risky, too unreliable, too inexperienced. Meanwhile, white businesses get endless credit with no questions asked.
This time, however, the game was exposed. Banks rejected the scheme not because of financial risk, but because they had no intention of helping black businesses grow.
The numbers are damning.
The then Minister of Small Business Khumbudzo Ntshavheni disclosed in Parliament that out of R200 billion, banks only disbursed R15 billion. And of that, 75% went to white-owned businesses. Black businesses received a mere 25%.
That means over R185 billion meant to save struggling businesses was locked away, ensuring that black businesses were left to collapse. This was not negligence — it was a calculated act of economic sabotage.
She also said even billionaire Johann Rupert’s so-called R1 billion relief scheme mirrored this racial bias: 75% of its beneficiaries were white, while only 25% were black. This is how white economic supremacy is maintained — by ensuring black businesses are starved of resources, while white businesses continue to thrive.
The consequences were devastating. Black business owners were forced into bankruptcy. Homes, cars, and assets were repossessed. Families lost everything. And who profited? The banks. They sat back, watched black businesses crumble, then swooped in to profit from auctioning off their assets. This was economic warfare.
Covid-19 exposed the truth: South Africa’s banks do not serve all South Africans. They exist to protect and expand white wealth while keeping black businesses under economic oppression.
But the problem runs deeper than just commercial banks. The real enemy is the South African Reserve Bank itself — a privately owned institution that serves elite financial interests rather than the people.
Until SARB is nationalised and works for all South Africans, transformation will remain a pipe dream. Policies must be enforced to compel banks to lend fairly, and black-owned banks must be fully licensed and supported to break this stranglehold.
This is not about one failed loan scheme. This is about a banking sector that has never been held accountable. This is about a financial system built to exclude black people. The Covid-19 loan scandal was just one of many tools used to maintain white economic dominance in South Africa.
South Africans must wake up. We cannot allow this betrayal to be forgotten. There must be consequences. There must be structural change. The banks must be forced to serve all South Africans, not just the privileged few. The fight for economic freedom is not over. Now is the time to claim our rights.
* Sipho Tshabalala is an independent writer, analyst and commentator.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.