South African banks have been reassured that if they came under any pressure following the current world credit crisis, the government would bail them out, African National Congress treasurer general Mathews Phosa said on Tuesday.
”Were South African banks to come under pressure, the government would intervene strongly to protect them,” Phosa said.
Phosa said most local companies, with the exception of financial institutions like Old Mutual, Investec and KPMG, would probably not be affected by the world financial turmoil.
He said South Africa’s exchange controls had helped the country to avoid the credit crisis.
Phosa was addressing a group of business leaders at a meeting organised by Accelerate Cape Town and Ernst and Young in Cape Town.
The group included representatives of Pam Golding properties, Nedbank, Pick n Pay and Media 24.
He said the ANC would not move from the ”recognisably prudent, economically conservative” policies that the businesses had become comfortable with over the past 14 years.
He said that corruption was a problem at the local government level and there was a need to change the procurement processes.
”A change in procurement processes to shift this role from local government to independent agencies is being considered to alleviate this,” Phosa said. — Sapa