ActionSA, one of South Africa's opposition political parties has raised grave concerns over the potential fallout from the collapse of Ithala SOC Limited, a state-owned company that is a key development finance agency.

This follows the Prudential Authority of the Reserve Bank's filing for the provisional liquidation of the bank, marking yet another failure among state-owned entities.

Despite the unfolding crisis, the government has reassured Ithala's retail depositors that their funds will be protected throughout the liquidation process.

However, with uncertainty looming over the bank's future, the implications for employees, customers, and the broader economy remain deeply worrying.

Channel Africa business reporter Innocent Semosa has more.