By Sipho Tshabalala
South Africans must wake up. We are witnessing, in real-time, the calculated destruction of black banking institutions, orchestrated by the very system that claims to represent us.
Ithala Bank is not just another casualty — it is a symbol of the economic war being waged against black people in this country. And like clockwork, the South African Reserve Bank (SARB) and Treasury have played their part to perfection, ensuring that another black financial institution is wiped off the map.
Dr. Mkhacani Joseph Maswanganyi, Chairperson of the Standing Committee on Finance, made it clear: Parliament resolved on December 3, 2024, that Ithala should be revitalised. Not liquidated. Not destroyed. Revitalised.
But did SARB and Treasury listen? No. Less than a month later, without consultation, without restructuring efforts, without any consideration for Parliament’s decision, they moved swiftly to kill Ithala. And when questioned? They hid behind legal jargon, claiming the matter is now “sub judice.” Translation? They refuse to be held accountable. They want this erasure to happen quietly, without resistance.
The orchestration of black financial exclusion is not a new phenomenon, but rather a deeply ingrained system of control that thrives on eliminating alternative banking options for the majority. When VBS Mutual Bank was dismantled, its customers were conveniently handed over to Nedbank. Now, Ithala’s clients have been absorbed into FNB.
A pattern is emerging, and it is no coincidence. The financial architecture of South Africa is designed to ensure that economic power remains in the hands of a few. Ithala’s demise is just the latest maneuver in a long-standing strategy of consolidating control.
Parliament is being undermined. The will of the people is being trampled.
A member of Parliament put it plainly: “We will have a serious uprising one day in this country by ordinary people who think that the authorities do not represent them.” And he is right. People are watching. People are seeing how black economic empowerment is systematically sabotaged at every turn. And people are getting angry.
The economy does not exist in a vacuum — it is a tool of influence, and those who wield it determine the course of a nation's prosperity or decline. The question is: why is the financial sector so threatened by independent black financial institutions? The answer lies in control. Control over capital. Control over growth. Control over opportunity.
South Africa’s banking system has never served black people. That is the truth. The very institutions that flourished under apartheid still control the economy today.
Ithala was one of the few banks that gave black entrepreneurs, small-scale farmers, and township businesses a fighting chance. And yet, rather than strengthening it, the powers that be have ensured its destruction.
Ask yourself: why? Why is it so difficult for a black business to access financing? Why is it near impossible for a black farmer to secure funding? Why are black-owned financial institutions being shut down while white-owned ones are protected at all costs?
Economic exclusion is not a byproduct of a failing system — it is an intentional act of gatekeeping. Financial institutions claim to operate under the principles of risk assessment, yet we have seen how preferential treatment is extended to companies aligned with established financial elites.
If a white-owned institution faced liquidity constraints, the entire system would rally to ensure its survival. But when a black-owned institution falters, it is swiftly dismantled, leaving no room for rehabilitation or recovery.
Parliament must not allow SARB to get away with this betrayal. The excuse of “sub judice” cannot be accepted as a shield against accountability. There must be an independent investigation into this liquidation.
Who made the call? Who stands to gain? What was the real motive behind this decision? The people of South Africa deserve answers, not excuses. And more importantly, they deserve a financial system that works for them, not against them.
The illusion of inclusivity within South Africa’s banking sector must be shattered.
Economic power must be reclaimed, and alternative financial models must be established. Ithala's destruction is not an isolated incident; it is a clear indication of what happens when black economic initiatives dare to disrupt the status quo.
If we do not fight back, the economic future of black South Africans will remain shackled to a system that was never meant to serve them.
Because this is not just about Ithala. This is about the future of black financial independence. This is about whether we will control our own destiny or remain at the mercy of those who have always worked against us.
The liquidation of Ithala is not just a banking decision — it is an attack on black economic freedom. And if South Africans do not stand up now, we will wake up one day to find ourselves permanently locked out of our own economy.
This is a fight for survival. And we cannot afford to lose.
* Sipho Tshabalala is an independent writer, analyst and commentator.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.