An inquiry must be launched into the impact the Zimbabwean banking crisis will have on South African banks that have major equity stakes or subsidiaries active in Zimbabwe, the Democratic Alliance said.
In a statement on Thursday DA finance spokesperson Raenette Taljaard urged Finance Minister Trevor Manuel not to allow the government’s stance of quiet diplomacy adversely to affect South Africa’s economy.
”It is equally important that Finance Minister Manuel takes steps to ensure that the South African banking sector does not become the latest casualty of the government’s ill-advised quiet diplomacy on Zimbabwe. Minister Manuel must break his silence on the economic consequences of quiet diplomacy,” she said.
She said there are fears that the escalating inflation and banking sector crisis in Zimbabwe will spill over into the local banking sector as Standard Bank, Absa and Nedbank have direct stakes in Zimbabwean banks.
”These new pressures on our banking system follow on the heels of the collapse of Saambou Bank and could have dire consequences if left unaddressed. Banks are already facing increased demands following new obligations in respect of [the] government’s empowerment charter for the financial services sector,” she said.
Taljaard said the ongoing political crisis in Zimbabwe has dire economic consequences for the entire Southern African Development Community region.
”The Mbeki government’s misguided efforts at crafting a diplomatic settlement with a dictatorial regime has cost South Africa dearly in terms of a loss of prestige and diplomatic clout in the international arena. The price tag to the South African economy must not be ignored.” — Sapa