Julius Malema and the EFF has successfully managed to create division within the ANC as two veterans argue about their plans to make state owned banks. ANC heavyweights Fikile Mbalula and Derek Hanekom have found themselves in a surprising disagreement over the establishment of a state-owned bank.
Mbalula supports the idea, while Hanekom strongly opposes it, arguing that the focus should be on fixing the basics before pursuing such a venture. Hanekom believes that a state-owned bank will not create jobs or improve the lives of ordinary people, raising questions about the necessity of such a mission.
This clash has raised eyebrows, as Mbalula has typically enjoyed widespread support within the ANC. Observers have noted that Hanekom, being a white man, seems to receive leniency when openly criticizing ANC policies on social media. They speculate that had it been someone else challenging Mbalula, disciplinary action would have been swift. These comments suggest a potential double standard within the party.
One major benefit of a state-owned bank is that it can provide access to credit to people and businesses that might not otherwise be able to get it. This can help to boost economic growth and create jobs. For example, a state-owned bank could provide loans to small businesses that are struggling to get financing from private banks. This could help these businesses to grow and create jobs.
One major disadvantage of a state-owned bank is that it can be subject to political interference. This means that the government could use the bank to support its own interests, rather than the interests of its citizens. For example, the government could use the bank to provide loans to its friends and allies, even if these loans are not sound investments. This could lead to the bank losing money and becoming insolvent.
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