BUSINESS NEWS - The Black Business Council says such a bank would make loans for the SMME sector easier to create jobs, particularly in rural areas and townships.
The Black Business Council (BBC) yesterday unveiled plans to establish a black-owned bank to empower the small, medium and micro enterprise (SMME) sector, as a solution to a stagnant economy and a high unemployment figure.
According to Statistics South Africa, the economy only grew 1.4% in the fourth quarter of 2018 contributing to an overall growth rate of 0.8% for the entire year, with the unemployment rate having decreased to 27.1% in the fourth quarter of 2018 from 27.5% in the previous period.
The total number of people who are unemployed is 6.14 million.
After a two-day summit, BBC president Sandile Zungu said a black-owned bank, which would be amenable to small businesses through providing funding, could serve as a catalyst to create jobs, particularly in rural areas and townships.
