Banking and financial services

Citibank is financing a major urban development.

Sector Insight

broadening of the scope of the bank’s ambitions. TymeBank has also signed a deal with TFG, a group that has a big presence in Gauteng, to help it expand its retail operations.

What used to be known as the Foschini Group has 34 brands, including Markhams, Totalsports, Jet and Dial a Bed, and 30-million customers. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450.

Agrant of R200-million made available by Citibank for a large infrastructure project in southern Gauteng has been classified as an equity-equivalent investment, earning the bank significant BEE credits.

The Department of Trade, Industry and Competition (dtic) has approved the amount, which forms part of a larger R1.3-billion amount that the bank is providing in seed capital, as a type of investment that exempts the bank from compliance with other elements of BEE legislation.

The area between Vereeniging and Vanderbijlpark is being developed as a major development node and plans for housing, an airport, industry and logistics all form part of the intended project.

The Competition Tribunal has unconditionally approved TymeBank’s purchase of Retail Capital, a fintech SMME funder, Retail Capital.

TymeBank, which is majority owned by Patrice Motsepe’s African Rainbow Capital, has been moving beyond its basic banking model recently and this purchase indicates another

Online Resources

Association for Savings and Investment South Africa: www.asisa.org.za

Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za

Financial Sector Conduct Authority: www.fsca.co.za

The flurry of new activity in the financial sector has slowed. Several new banks and exchanges have been launched in South Africa since 2017, most of them in Johannesburg. One of the stock exchanges, 4AX, has rebranded as the Cape Town Stock Exchange and moved to that city.

The launch by Sanlam Investments of a Sustainable Infrastructure Fund is a sign of the times. In the context of climate change caused by the use of fossil fuels, the investment community is increasingly putting emphasis on sustainability. Sanlam Group will invest R6-billion in the fund and aims to attract a further R5-billion from institutional investors. ■