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OVERVIEW

Banking and financial services Three new banks are set to join the sector.

SECTOR INSIGHT Gap insurance is an innovative new product. • KZN banks are financing mega-projects.

N

o fewer than three new banks are set to make their debuts on the South African market in the near future, with one of them based in KwaZulu-Natal. All are state-related enterprises: Ithala, Postbank and a Human Settlements Development Bank. The Ithala Development Finance Corporation has functioned for many years in the province as the provider of funds for small enterprises, especially in areas where infrastructure is poor and access to traditional banking services is not good. The provincial government, which runs Ithala, aims to have a banking licence for the entity by the end of 2017. In 2016, Postbank (part of the South African Post Office, SAPO) received a first-level licence. Once a board of directors has been appointed and a company formed, the Reserve Bank is likely to grant the full licence. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book. KWAZULU-NATAL BUSINESS 2017/18

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Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large state-funded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. Privatesector investment will be sought. For many decades South Africa had a retail banking Big Four – Standard Bank, Nedbank, Absa/Barclays and First National Bank. All of them have a strong presence in the province, but the big news in the retail sector since 2001 has been the emergence of Capitec Bank. Based on Capitec’s results for 2015/16, BusinessTech published a chart giving Capitec the fourth-most customers. Merchant banking and investment banking are the most com-

KwaZulu-Natal Business 2017/18  

KwaZulu-Natal Business 2016/17 is the eighth edition of this highly successful publication that has since its launch in 2007 established its...

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