South Africa launches the Corporation for Deposit Insurance (CODI)
The Deposit Insurance System (DIS) in Africa recorded yet another key milestone with the launch of South Africa’s Corporation for Deposit Insurance. The event, held at the magnificent Maslow Hotel on April 25, 2024, was graced with the presence of South Africa’s Finance Minister Hon. Enoch Godongwana who delivered a captivating keynote address. The ARC Chairperson, who doubles as the CEO of Deposit Protection Fund of Uganda, Dr. Julia Clare Olima Oyet joined the fraternity of DIS from the Africa region to witness this historic occasion.
The caliber and importance of the occasion was underscored by the presence of both the Governor of the Reserve Bank of South Africa Mr. Lesetja Kganyago and his deputy Dr. Mampho Modise. Other dignitaries at the event included Members of Parliament, Board members of South Africa Reserve Bank and CODI, the CEO of CODI Ms. Sabihah Mohamed, the Commissioner of Financial Sector Conduct Authority and the Banking Association of South Africa’s Managing Director, among others.
The Finance Minister noted that the launch of CODI was a significant step in overhauling the financial regulatory structure of South Africa.
In the short span of about a year, the ARC of IADI has witnessed growth with the addition of two new members. The launch of CODI follows the recent admission by IADI of Malawi’s Deposit Insurance Corporation as a full member of the global deposit insurance system. These are significant milestones in IADI and ARC’s quest to continue with the expansion of deposit insurance as a key facet of the global financial system.
The Governor South Africa Reserve Bank noted that deposits were special and were protected by most governments. They are special because many depositors hardly think of themselves as investors, they have zero maturity meaning they can be called at any time. He reiterated that guaranteeing deposits eliminates bank runs. He congratulated CODI for the important milestone achieved.
