Banking and finance

Retail banking has taken on a new meaning.

TymeBank, one of the newer entrants onto the South African banking scene, is taking the concept of “retail banking” to another level. Having run banking kiosks within retailers such as Pick n Pay and Boxer for several years, TymeBank has signed a deal with TFG, a group that has a big presence in the Northern Cape.

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.

Another relatively new bank is Capitec. Investment holding company PSG has reduced its holding in Capitec Bank from 32% to 4%, earning about R4-billion by selling those shares.

Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour.

In 2022, financial services group Old Mutual received permission from the prudential authority of the South African Reserve Bank to apply for a banking licence. The bank will spend R1.75-billion on setting up the bank and intends to launch in 2024.

With the renewable energy sector booming in South Africa, a new sector in need of project funding has opened up for banks. The Northern Cape has attracted a large number of independent power producers.

South Africa’s four big retail banks (Nedbank, Absa, Standard Bank and First National Bank) have a solid presence in the major towns in the province.

Most agricultural companies have financing and services divisions, as one would expect in a province with a strong and varied agricultural sector which exports much of its produce.

The Land and Agricultural Development Bank of South Africa (Land Bank) is a major participant in the Northern Cape financial sector and the Industrial Development Corporation (IDC), as an equity investor, is another important player.

Online Resources

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

Auditor-General of South Africa: www.agsa.co.za

Banking Association South Africa: www.banking.org.za

The launch by Sanlam Investments of a Sustainable Infrastructure Fund is a sign of the times. The South African state has promised a huge infrastructure drive but 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 R5billion from institutional investors.

Infrastructure South Africa (ISA) is actively involved in several Northern Cape projects. A special purpose vehicle will be established, with development finance institutions, to tackle the backlog in school infrastructure and a similar idea underpins the financing of a rural roads programme. ■