OVERVIEW Banking and
OVERVIEW Banking and financial services Financing of infrastructure is becoming a priority. The launch by Sanlam Investments of a Sustainable Infrastructure Fund is a sign of the times. The South African state and the Provincial Government of KwaZulu-Natal have promised a huge infrastructure drive but in the context of climate change caused by the use of fossil fuels, 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 Brics New Development Bank has made a 0-million loan for the expansion of the container terminal in Durban. The busy port is currently stretched beyond capacity and waiting time for trucks can be extremely long. Activist groups in Durban’s southern suburbs are opposing the loan and the expansion, saying that further development will increase pollution in the area and lead to even more dangerous traffic congestion. Up the coast at Richards Bay, the World Bank’s International Finance Corporation (IFC) has committed -million to a feasibility study on the construction of a liquefied natural gas (LNG) storage and regasification terminal. The study’s costs are shared with Transnet and a private investor will be sought if the feasibility study is positive. Aspen Pharmacare is a speciality pharmaceuticals company with a presence in more than 50 countries and nearly 9 000 employees. The company’s headquarters are in La Lucia Ridge north of Durban. Aspen’s decision to register a second listing on one of South Africa’s newest stock exchanges (the primary listing remains on the JSE) was a boost for A2X, which set out to attract secondary listings. Of the four new exchanges that South Africa has seen since 2017, ZARX has been suspended and 4AX has rebranded as the Cape Town Stock Exchange. Equity Express Securities Exchange (EESE) trades in Black Economic Empowerment (BEE). Together with real estate and general business, the financial sector in KwaZulu-Natal accounts for 18% of gross domestic product (GDP). ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Financial Sector Conduct Authority: www.fsca.co.za South African Institute for Chartered Accountants: www.saica.co.za SECTOR INSIGHT Aspen has launched a secondary stock exchange listing. Credit: Unsplash Big strides have been made in providing banking services to the previously unbanked but there is still a long way to go. The widespread use of smartphones is creating new opportunities for banks and other financial service providers to further close the gap. Standard Bank introduced the low-cost MyMo account in KwaZulu-Natal in 2020. With free electronic transactions, unlimited card swipes and a low monthly fee, the MyMo account is ideal for low-income earners, micro-entrepreneurs and the poor. Customers do not have to visit branches to sign up for the account. They can take a selfie on the mobile app. ■ KWAZULU-NATAL BUSINESS 2022/23 48
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