BASA: SA banking industry surpasses transformation targets for 2023

The latest BASA Transformation Report 2024 has revealed that banks in South Africa have exceeded their black ownership and economic interest targets, showcasing their dedication to promoting inclusive economic growth. The report evaluates the transformation and progress of banks in seven key areas, emphasizing their contributions to community development and change. Bongiwe Kunene, Managing Director of the Banking Association of South Africa (BASA), discussed the significance of the report, highlighting key aspects such as financial investment in small businesses and the transformation of decision-making processes within banks. Kunene emphasized the importance of increasing black representation at all levels of bank management, from junior managers to board directors. While progress has been made, with notable growth in black representation in junior managerial roles, there is still room for improvement at the senior management and board levels. Kunene acknowledged that the journey towards full transformation is ongoing but noted positive developments in promoting diversity within banking institutions. Despite the gains, Kunene addressed concerns about ensuring fair treatment for black customers and the need for greater representation of decision-makers who can drive systemic change. The report also highlighted advancements in affordable housing and lending to black-owned enterprises, indicating a positive trajectory in supporting underserved communities and businesses. However, challenges remain in defining and supporting small and medium-sized enterprises (SMEs), with calls for better collaboration between banks, government, and other funders to address gaps in funding and support for SMEs. Overall, the report underscores the banking industry's commitment to advancing economic transformation and inclusivity in South Africa, while acknowledging the ongoing work needed to drive meaningful change and empower marginalized groups.