Eastern Cape Business 2023-24

OVERVIEW
Banking and financial
services
Agricultural app extends bank’s reach.
Absa Bank, which already has a strong presence in the agricultural
market in South Africa, has bought shares in an
e-trading platform. Khula! has three platforms that allow
farmers and distributors to connect with exports and retail
and wholesale buyers. More than 5 000 products are available on the
Input Marketplace app.
Absa has previously supported Khula! through its Enterprise
Development division and has worked with the app on standardising
payment options. Abrie Rautenbach, Head of Absa AgriBusiness, says
the acquisition will not only enhance Absa’s agriculture proposition for
SMMEs, but allow Absa to further assist with the continued expansion
of the Khula! proposition, potentially also into other African markets in
which the bank operates.
African Bank, with an eye on listing on the JSE, completed its
purchase of Ubank in 2022. When Ubank came out of curatorship in
2016, the SA Reserve Bank acquired its shares and invested R3-billion. The
purchase will expand African Bank’s lending base by nearly five-million
customers and comes on the back of the purchase of Grindrod Bank,
which strengthened the bank’s business-lending operations.
Two new licences for mutual banking have been approved
nationally, despite the collapse of VBS, a Limpopo-based mutual bank.
The nature of the South African market lends itself to mutual banking.
Both the Young Women in Business Network (YWBN) and Bank Zero
will use the mutual model.
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.
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.
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 Pick n Pay and Boxer stores for several
years, TymeBank has signed a deal with TFG, a group that has a big
presence in the Eastern Cape.
ONLINE RESOURCES
Auditor-General of South Africa: www.agsa.co.za
Financial Sector Conduct Authority: www.fsca.co.za
South African Institute for Chartered Accountants: www.saica.co.za
SECTOR INSIGHT
African Bank has
bought Ubank.
Khula! CEO Karidas Tshintsholo.
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.
The financial and business
services sector is responsible of
19.2% of the Eastern Cape’s Gross
Domestic Product (StatsSA). The
sector provides employment
for 141 000 people. Agricultural
finance is an important factor
in the Eastern Cape. Production
loans, vehicle financing and
revolving credit plans all play an
important role in keeping farmers
and agro-processors in business. ■
EASTERN CAPE BUSINESS 2023/24
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