President Jacob Zuma has ordered ANC policy makers to introduce strict new laws for South Africa’s financial institutions which would force them to sell stakes to black investors, according to weekend reports.
Economist Lumkile Mondi says Zuma's stance is pure 'politicking' following Barclays Bank's plan to sell off African operations.
Mondi has called into question the timing of the radical economic stance amid an ongoing battle between the controversial Gupta family and major South African banks.
The President's utterances are political and one could smell a rat given what has been happening with the Gupta family and the banking sector.— Lumkile Mondi, economist
He says establishing black-owned banks needs to be driven by market opportunity and returns, not politics.
Take listen to Lumkile Mondi talk politics and economic transformation:
This article first appeared on CapeTalk : Zuma's push for black bank investors politically motivated - economist