News
Basa Transformation Report 2024
Publication Date: 06/02/2025
South African banks are meeting the challenge of transformation but increased regulation is unlikely to result in further sustainable transformation, writes BASA managing director Bongiwe Kunene. Already, banks’ financing of transformation and inclusive economic growth far exceed what is required of them by legislation and banks are likely to be able to do much more if there is a supportive operating environment for business and an expanding economy.
South African banks are coming under increasing legislative, regulatory and social pressure to fast-track transformation in the financial sector and the whole economy. They are meeting the challenge.
The 2024 Banking Association South Africa (BASA) Transformation Report shows that:
- Banks are ahead of the Amended Financial Sector Code (FSC) targets on black ownership and economic interest in banks. Overall black ownership is at 38% for 2023, against a target of 25%; and black economic interest – the right to share company profits – is at 29%, against a target of 25%.
- Banks are on track to meet or further exceed black management control targets. Ninety percent of junior managers in banks are black, above a target of 80%. This drops to 68% (target 70%) for middle management, 51% (target 60%) for senior management and 36% (target 60%) for top senior managers. While senior and top senior managers are noticeably below target, the strong pipeline of junior and mid-level black managers is a sure indication that senior managers will soon reflect the demographics of the country. Already, 48% of bank directors are black, against a target of 50%.
- Banks’ contribution to the transformation of the economy is also beyond the FSC’s target of R130bn from 2018 to 2023. In 2023, banks provided R337bn in empowerment financing, of which a total of R180bn went to affordable housing, transformational infrastructure and black small and agricultural businesses.
- Financial inclusion provides individuals and businesses with access to appropriate and affordable financial products and services, making them part of the economy by helping them to save and have responsible access to credit. South African banks provided 23-million financial products in 2023, which are considered to facilitate economic inclusion – 53% above the FSC target.
View the full transformation report 2024 here.