By: Noluthando Mchunu
The Provincial Government has welcomed National Treasury’s announcement of a R2.2 billion allocation to enable the repayment of depositors of Ithala Bank.
This release of funds follows months of intensive intergovernmental engagements involving the Presidency, National Treasury, and the KwaZulu-Natal Provincial Government. The intervention aims to protect ordinary depositors and stabilise confidence in the province’s developmental finance ecosystem, given Ithala’s long-standing role in supporting small enterprises and rural communities.
The payout process is scheduled to begin on 8 December 2025.
Provincial Government spokesperson Bongani Gina has urged depositors not to visit Ithala branches, emphasising that payments will be administered exclusively through the appointed payout bank. Details regarding verification steps, required documentation, and communication channels will be released in due course to ensure a smooth and secure process.
The Provincial Government further noted that this measure demonstrates a commitment to safeguarding the savings of vulnerable customers and maintaining stability within the provincial financial sector.
