South African Insurance Association

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Developments in Driving Transformation of the Financial Sector

In advancing the transformation agenda in the sector and prioritising the transformation objective, the Financial Sector Charter Council “FSC”, as announced, was renamed to the Financial Sector Transformation Council “FSTC” (the Council). The announcement followed the decision by the Council’s board to reconstitute the organisation to refocus its mandate on driving and monitoring transformation of the financial sector.

Some of the priority objectives are elevating participation to senior members of the relevant constituencies in the governance structures within the council and strengthening its mandate with the aim of providing the sector with strategic direction, promoting B-BBEE compliance by the entities in the sector on transformation and development initiatives that support economic growth and job creation, which will include the following:

  • The funding and implementation of transformational infrastructure projects;
  • The funding and development of black business in general and black industrialists in particular;
  • Support for small black businesses through Enterprise and Supplier Development (ESD) and preferential procurement;
  • Public Private Partnership (PPP) projects to fund higher education; and
  • Increasing financial inclusion and consumer financial literacy levels.

Another project aimed at accelerating the transformation objectives of the sector has taken shape through negotiations among the NEDLAC Constituencies (Business, Labour, Government and Community) in preparation for the 2nd NEDLAC Financial Sector Summit. The process is close to an end with the constituencies in the process of signing off Agreements and a Declaration to be adopted for sign-off at a Summit anticipated to take place in March 2019. It is anticipated that the Summit will be presided by the president of the republic and the official date will be announced once it has been confirmed with the Presidency.

This has been a lengthy process in which SAIA and its member representatives have played a key role in discussions that have led to considerable compromises among the constituencies on some of the issues that were presented in the 1st Parliament Report on Transformation of the Financial Sector released by the joint Steering Committee on Finance and the dti Portfolio Committee in November 2017, and around transformation of the sector in general.

For more information contact:
Themba Palagangwe , SAIA General Manager, Governance and Transformation