‘Ithala Is Saved’: ANC KZN Steps In to Rescue Community Bank from Collapse

With the ink barely dry on a lifeline deal, ANC KZN leaders confirm the province’s only homegrown bank will remain open and the fight to save it is far from over.

In a province where small business owners rely on community banking as a lifeline, the news hit hard: Ithala Bank, KwaZulu-Natal’s proudly local financial institution, was facing liquidation. But this week, a sigh of relief echoed from the streets of Umlazi to the corridors of the ANC Provincial Office in Durban: Ithala has been saved.

At a media briefing on Monday, ANC KZN Convenor Jeff Radebe confirmed that the threat of liquidation had been averted thanks to urgent interventions from provincial leadership and direct engagement with national figures, including Finance Minister Enoch Godongwana.

A Homegrown Institution on the Brink

Founded during apartheid to support Black-owned enterprises and underserved communities, Ithala has long stood as a symbol of economic resistance and hope in KZN. It’s not just a bank, it’s where taxi associations stash their savings, where township entrepreneurs get their first loan, and where pensioners collect their grant money.

So when the South African Reserve Bank and the Prudential Authority raised red flags that could have led to the bank’s liquidation, the fallout was poised to be catastrophic.

“This wasn’t just a financial issue, it was an existential crisis for thousands of poor and working-class families in KwaZulu-Natal,” Radebe told journalists.
“Had Ithala been liquidated, it would have stripped away decades of hard-won access to financial services in places where commercial banks simply don’t go.”

How the ANC Stepped In

According to Radebe, the ANC in KZN refused to stand by. Working closely with national leaders, including Minister Godongwana, the party put forward a recovery proposal to ensure Ithala’s survival.

That included commitments to:

• Tighten governance and compliance, addressing the same regulatory issues that triggered the crisis;

• Forge strategic partnerships to improve financial sustainability;

• And launch a turnaround strategy focused on transparency, ethical leadership, and long-term viability.

“This is a victory for proactive governance and political accountability,” Radebe said. “It shows that institutions built for the people must be protected by the people.”

Local Reaction: Relief and Reflection

Reaction across KZN was swift. On social media, the hashtag #IthalaIsOurs began trending, with users praising the decision and sharing personal stories about how the bank had helped them launch businesses or access savings when no other institution would.

But not everyone is convinced the bank is out of the woods yet.

“I’m happy Ithala’s doors are still open,” tweeted @SbuSays, a small business owner in Pietermaritzburg. “But we need to know that the next generation won’t have to fight for the same thing again. Fix the foundation, don’t just patch the roof.”

Financial analysts have echoed the need for deeper structural changes, warning that political will must be followed by real economic planning and oversight.

A Broader Message on Internal Renewal

The Ithala announcement was just one piece of a larger puzzle shared at the ANC KZN briefing. Radebe also introduced the Regional Task Teams (RTTs) that will lead the party’s internal restructuring across all 11 regions in the province.

These include veterans like Don Gumede, Belinda Scott, Zet Luzipho and Nathi Mdladla, respected names with deep grassroots credibility.

“These are cadres with the discipline, integrity, and experience to rebuild the ANC’s connection with communities,” Radebe said.
“This is part of a broader agenda: institutional protection on the one hand, and internal political renewal on the other.”

More Than a Rescue

As South Africa prepares to mark the 70th anniversary of the Freedom Charter, the rescue of Ithala feels symbolic, a reminder of the ANC’s historical promise to empower the marginalised through ownership, dignity, and self-determination.

But this moment also raises questions: Why was Ithala allowed to get to the brink in the first place? Can the same political structures that saved it now reform it for the future?

Radebe insists they can and will.

“Let us work together to build a KwaZulu-Natal that is just, that is united and prosperous. We remain, as the ANC, steadfast in our resolve to serve our people with honesty, discipline, and humility.”

The bank is still standing, but the work of restoring trust and ensuring survival has only just begun. For communities who’ve depended on Ithala for decades, it’s not just about banking, it’s about belonging. And now, more than ever, Ithala must live up to its name: a stronghold.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com