KwaZulu-Natal Business 2016-17 edition

OVERVIEW
Banking and financial services
Merchant banking is very competitive in KwaZulu-Natal.
Together with real estate and general business, the financial
sector in KwaZulu-Natal accounts for 18% of gross domestic
product (GDP). With the renewable energy sector being
actively pursued in KwaZulu-Natal, the creation by Investec
and the European Investment Bank of a renewable-energy fund of
€100-million will create many options for investors.
The four major national retail banks (Absa, Standard Bank, First
National Bank and Nedbank) are well represented in KwaZulu-Natal,
while relative newcomer Capitec Bank has shown remarkable growth
with its low-cost offerings: a cheque account, a savings account and
an unsecured loan.
Capitec was established in 2001 and listed on the JSE in 2002. As
of August 2015, Capitec had 691 branches, a rapid increase over the
benchmark figure of 500 that was achieved in January 2012. With 133
branches in KwaZulu-Natal, and in the context of other banks closing
down some rural branches, this is a banking business that is clearly on
the move. Capitec customers can also draw cash in retail stores such
as Pick n Pay, Boxer and Shoprite.
In 2015 the bank had 6.7-million clients, up from 3.7-million just
three years earlier. Capitec has 11 000 employees.
SECTOR HIGHLIGHTS
€100-million is available to
renewable energy investors.
• Capitec now has 133
branches in KwaZulu-
Natal.
• Old Mutual has announced
plans to separate its four
divisions.
In the retail banking sector,
despite really tough economic
conditions in recent months
and years, South Africa's Big
Four (Standard Bank, Absa, First
National Bank and Nedbank)
increased headline earnings by
12.5% to R33.8-billion in the second
six months of 2015. Profits
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