EFF will keep pushing for a radical economic revolution in SA

Ideas

EFF will keep pushing for a radical economic revolution in SA

On its eighth anniversary, party vows to keep advocating for the redistribution of the economy for the benefit of all

Omphile Maotwe

The formation of the EFF eight years ago has placed the focus on the economic question in SA and across the African continent. The EFF exists because without economic freedom, all other freedoms, including political freedom, are meaningless. In the last eight years, the EFF always has been clear about ownership, control, and redistribution of the economy for the benefit of all, and in the South African case, this refers directly to the financial sector.

The financial sector is one of the most important sectors in SA’s economy and includes the banks, insurance companies and investment funds which play a critical role in the economic life of our country. In 1994, the financial services sector contributed 7% to the total GDP. In 2020, the share of the financial services sector to the GDP increased to 21%, making it the highest contributor.

Unsurprisingly, in terms of ownership and control, the financial sector remains in the hands of the white minority, in particular men, even when ownership has moved to institutional shareholders. According to the Reserve Bank, SA’s banking sector is dominated by the five largest banks, which collectively hold 90.1% of the total banking-sector assets. SA’s life insurance sector is dominated by the five largest insurers, which collectively hold 72.9% of the total assets, while the non-life insurance sector is dominated by eight large insurers, which hold more than 55.8% of gross premiums. Ownership patterns are similar in stock exchange and asset management...

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