National Treasury releases R2.2bn lifeline for Ithala depositors

By Thapelo Molefe

The National Treasury has confirmed it will make up to R2.2 billion available to repay around 250 000 Ithala depositors, marking the first major breakthrough in a financial crisis that left thousands of KwaZulu-Natal residents without access to their savings since January 2025.

The provincial government confirmed on Wednesday that the payout process will begin on Monday, 8 December.

This follows months of negotiations between the KZN government of provincial unity, the National Treasury, the Office of the President, and the Prudential Authority.

Depositors’ access to funds was blocked after the Prudential Authority applied to the Pietermaritzburg High Court in January 2025 for the provisional liquidation of Ithala SOC Limited.

The Prudential Authority’s repayment administrator and subsequent court processes resulted in depositors’ accounts being frozen.

Treasury’s R2.2 billion allocation enables depositors to be repaid but does not in itself halt the liquidation application, which remains pending, with