Northern Cape Business 2018-19 edition

OVERVIEW
Senwes is another big agricultural company active in the Northern
Cape, although its headquarters are in Klerksdorp, North West, and it
is active across South Africa. It offers many products within its Credit
division, including asset financing in collaboration with Wesbank. In
2017 Senwes and its holding company Senwesbel became the first new
stocks to be listed on the country’s new stock exchange, the ZAR X.
Upington-based KLK Landbou has insurance and medical cover
products while OVK offers insurance and financing options. Kaapagri
has three offices in the Northern Cape where farmers can consult on
financial matters.
With the renewable energy
sector booming in South Africa,
a whole new sector in need of
project funding has opened up
for banks. The Northern Cape has
attracted a very high percentage
of independent power producers
which have won the right to build
power plants, especially in solar
power sector.
New banks
The first new banking licence in nearly two decades was issued in 2017,
to TymeDigital by Commonwealth Bank SA. The bank will have no
physical branches although Tyme’s Money Transfer product, which it
launched in 2016, is available at Boxer and Pick n Pay. African Rainbow
Capital is the venture’s BEE partner. The banking licence is the first to
be issued since Capitec was granted a licence by the South African
Reserve Bank in 1999.
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. Relative newcomer, Capitec, is rapidly moving towards being
part of a Big Five and it announced in 2018 that it would partner with
Centriq Life to enter the insurance market. Capitec has no fewer than
21 branches in the Northern Cape. The fact that it has four branches in
Kuruman, one more than its Upington footprint, suggests that Capitec
has sold its low-cost banking model well to mine workers.
In a province with a high proportion of rural citizens such as the
Northern Cape, the prospect of Postbank being upgraded to a full-service
bank is positive news. 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. The large geographical footprint of the Post Office
will make the bank easily accessible to even remote parts of the country.
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
Chartered Institute for Government Finance, Audit and Risk
Officers: www.cigfaro.co.za
Financial Services Board: www.fsb.co.za
Institute of Bankers in South Africa: www.iob.co.za
Office of the Ombudsman for Banking Services: www.obssa.co.za
Improving access
Nedbank has Approve-it, which
allows customers to accept or
reject an Internet transaction
by cellphone. Nedbank also has
partnerships with shops such as
Boxer Stores and Pick n Pay where
customers can have access to
financial services in previously
unserviced areas.
Some of Nedbank’s other innovations
include Home Loans
Online Digital Channel and Market
Edge, together with the Nedbank
App Suite. The Nedbank@Work
product offers targeted service
to employees of companies that
bank with Nedbank, including free
advice. The Keyona Plus account
includes funeral cover, a loan facility
and a method of transferring
money. The Nedbank4me account
is tailored to the youth market.
Among innovations designed
to reach the unbanked are Teba
Bank allowing customers to deposit
at supermarkets, Absa’s
mobile banks and FNB’s mobile
branches. Standard Bank’s
community-banking initiative
offers a low-cost cellphonebanking
service. Retailers can
act as agents for the bank, even
in remote rural areas.
59 NORTHERN CAPE BUSINESS 2018/19