Financial Services
Banking
In the last decade Cape Town and environs have become the financial services hub of Africa south of the Sahara. This is not surprising. After all Cape Town has always been very strong in the financial services industry. In addition the deterioration of Johannesburg has given impetus to this development. Institutions prefer the stability and good governance to be found in the Western Cape.
It is our intention to encourage and facilitate the development of the financial services sector so that the Cape becomes one of the major financial services centres in the world. To this end we will interact with both the local and international community to ensure that we stay and play a leading role in the development of the financial services sector. In particular we will encourage the development of innovative financial products.
The reform of the banking sector is already in progress with the establishment of several new banks catering for the ordinary citizen. The process of making banking more affordable and customer friendly will be encouraged. The promotion of savings among all citizens needs to be seen as a priority for economic growth. In this regard peoples savings should not be eaten up by bank charges.
In moving ahead, two important innovations need to be further developed — the cashless society and crypto currency.
The cash card replaces cash and therefore eliminates the insecurity of having cash on hand. Sweden is an example of where this has been done successfully. In fact vendors refuse to accept cash. Such a system is more acceptable to third world people who do not trust “paper”.
Crypto is a very recent and useful innovation and its further development should be encouraged without being stifled by overregulation. However, given the serious scams and other bad practices that have occurred some regulation is required. All of this will have to be done in consultation with the banking sector.
The United Cape States will encourage legislation to grow the financial services sector, for instance, the laws to free up international electronic funds transfer to and from the UCS, making direct international payments instantaneous. Renewed focus on technical education and investment in infrastructure (networks and electricity supply) will enable all UCS first-world businesses to fully participate in the digital world economy.
Being directly linked by fiber-optic cable to Europe, the Americas and Asia, the UCS will be in the optimal position to provide high-quality digital services to within the UCS and other parts of the world.
In pursuing much of the above we will have to work with both the national and international financial community. We cannot achieve reform and development unilaterally.