Banking and financial services

Infrastructure funds are attracting investors.

Sector Insight

Sanlam, established in 1918 as a life insurer, is now a financial services company with five main divisions, including Corporate, Personal Finance and Emerging Markets. Santam focusses on short-term insurance. With its headquarters in Bellville, Sanlam is Africa’s largest insurance company.

Sanlam Investments has launched a Sustainable Infrastructure Fund which primarily invests in senior or subordinated debt across a wide range of South African infrastructure assets, with the ability to invest up to 10% in equity.

The South African state has promised a huge infrastructure drive but in the context of climate change, 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. Investments will be made in housing, transport, health, water, waste, communication, conventional energy and renewable energy, a fast-growing sector with enormous potential.

The Western Cape’s evolution into a technology hub is one of the reasons why one of South Africa’s newest stock exchanges chose to move to the Cape and rebrand as Cape Town Stock Exchange.

This trend is also persuading banks, insurance providers, asset managers and venture capitalists to choose to relocate. There are more than 40 000 jobs in the technology sector (more than double the total of Nairobi and Lagos combined, Wesgro) and formal employment in the financial sector exceeds 50 000.

Together with business services, the financial sector comprises the

Online Resources

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

Insurance Institute of South Africa: www.iisa.co.za

South African Institute of Chartered Accountants: www.saica.co.za biggest contributor to the provincial economy. According to Wesgro, 75% of the venture capital deals that happen in South Africa originate in the Western Cape. Most financial firms based in Cape Town have a long history, some going back as far as 1845 when Old Mutual started. One of the most successful disruptors in recent times has been Stellenbosch-based Capitec Bank.

The African Institute of Financial Markets and Risk Management (AIFMRM) aims is to meet the demands for skills by developing local talent. It is supported by the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty.

The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Futuregrowth and Coronation (Newlands), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Insurers such as Santam and Metropolitan Life are based in Bellville. Nomura, a Japanese financial holding company, has a presence in the Cape through Nomura South Africa which offers investment banking services. ■