Foreword: Monde Ndlovu

The miracle of 1994 looms largely over our history, for that was the moment the country ushered in a new dispensation, underpinned by democratic values. I must hasten to say, that this miracle moment was not the end of the transformation process, but rather the beginning.

Monde Ndlovu Head of Advocacy & Thought leadership, BMF

This moment enabled the country to begin crafting the necessary frameworks and policies for transformation to happen. As an unintended consequence, what has now taken root is the lack of adherence to the tenants of transformation, and the black majority have handed over their aspirations to a system that has not deepened the agenda of transformation. The minority groups have consolidated their economic and social power for their own benefit. True reconciliation must therefore begin with redefining economic power in the country, and not merely accept hollow political power. The economy is the heart of reconciliation, and our white compatriots have a crucial role to play in the transformation process.

The country’ s future is under severe threat, and if we do not take hold of the transformation process, sadly we might find ourselves in the worst position since the dawn of this democratic order. In the words of the late Don Mkhwanazi, “transformation is not the rearranging of the tables and chairs on a sinking titanic, but it is the rebuilding of the ship”. His words ring true today, as the country continues to debate how to transform within its context. Rebuilding the ship cannot be done without bold leadership at all levels in society. The country seems to align itself with global expectations without firmly dealing with matters of equity first in the country, hence the ongoing triple challenges of inequality, unemployment, and poverty.

In the words of the late Lot Ndlovu, “South Africa will one day begin to experience transformation fatigue, therefore, we must engage properly whilst we are still fresh before we loose more time”. This statement was uttered at the BMF conference in 2010, and his words are beginning to haunt all of us, that we are living in the era of transformation fatigue. This fatigue is seen across the black lobby group space, where black leaders are not as vocal about transformation issues as they should. Government and all its acute challenges has lost the credibility to advance transformation is this country, because the public sector hardly complies with the B-BEE Act, and at best, a 10% of the public sector complies with the Act. The private sector lends itself to cutting corners in effecting transformation, even though companies on the JSE have a better compliance figure with B-BBEE, sitting around 43%.

The B-BBEE Act and its implementation is receiving daily criticism from many quarters, with little response from key stakeholders in society. The State of the Nation address did not mention the importance of B-BBEE, but rather highlighting the key elements of the Recovery and Reconstruction Plan, where infrastructure has been touted as the key lever for driving economic growth and development. There is a deliberate attempt to separate economic growth and transformation and positioning transformation as a costly exercise that needs to be scrapped at all costs. Key organisations in society are leading this charge of removing transformational laws because in their analysis, only a few black people have benefited from these laws. They seek to introduce the sustainable development goals as a framework for a new system. This logic is greatly flawed and disingenuous because these very goals can find expression within the B-BBEE elements.

We however do have hope, as we reflect on the state of transformation in the country. This hope lies within the desire for us all to create a country where black people will enjoy the fruit of their labour. This can be done and must be done.

The financial wellness partner

of employed South Africans

Bayport South Africa has been issuing unsecured longterm loans to South Africans since 2004. Our goal to create a transformed financial services company that helps to bring about economic empowerment and transformation in South Africa was realised in 2017 when a black-owned consortium acquired 51% ownership of Bayport South Africa. The Government Employees Pension Fund (GEPF) has a 35.7% shareholding and a black-owned South African strategic investment partner 15.3%.

Pursuing a business model that brings financial wellness within reach of employed South Africans was the next logical step. In 2019 we launched Bayport Money Solutions – a corporate financial wellness programme that combines practical debt relief assistance and financial literacy.

Financial distress is not only a personal or family dilemma; it has a direct impact on employers and on the national economy. Employees who are caught in a debilitating debt trap are less healthy, less attentive and less productive – thus contributing less to the economy. Bayport Money Solutions addresses all these issues while giving employees the means to achieve lasting personal economic transformation.

Bayport has partnered with over 40 private and public sector employers over the past year to offer the Bayport Money Solutions programme to their workforce. The success of the programme rests on the partnership between Bayport and employers, which allows us to pass on the benefit of the reduced cost of risk to their employees, our customers. Through this, and our ability and willingness to extend high-value, long-term credit to individuals that would not generally qualify for credit in the open market, employees can immediately increase their monthly take-home pay, reduce their overall debt burden and, over time, improve their credit profile. The impact of this approach is evident in numerous customer testimonials. Here is an SMS we received recently:

Tonight I’m sleeping again in my own house with my family. It is like I am dreaming. For a long time I slept in a municipality truck while I was running away from the loan sharks. Now I am in control of my debt.

Having learned that once-off assistance does not suffice to break bad money habits, a critical part of our offering is financial literacy that includes regular free credit health reports, wellness days, financial literacy training, digital access to financial literacy information and, if required, on-site or online access to financial coaches. Our belief that financial inclusion, practical solutions and financial literacy are the keys to personal economic transformation is evident in all we do.