No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
No data available for the deliverable: Corporation for Deposit Insurance (CODI)
Summary
CODI is one of a number of Twin Peaks regulatory reforms introduced after the 2008-09 global financial crisis. It is part of the wider financial sector safety net that includes the Prudential Authority (PA), which supervises financial institutions; the Financial Sector Conduct Authority (FSCA) that ensures that financial institutions treat their customers fairly and transparently; and the SARB, the lender of last resort and resolution authority responsible for the orderly resolution of failed designated institutions. CODI is designed to safeguard the most vulnerable depositors in our society. It provides cover of up to R100,000 to each qualifying depositor per bank in the event of a bank’s collapse. This coverage limit fully protects nine out of 10 qualifying depositors nationwide.
Prior to the introduction of CODI, South Africa did not have an explicit deposit insurance scheme, compelling the government to use taxpayers’ money to compensate affected depositors on a case-by-case basis. COMPLETE: We stopped tracking this reform at end-June 2025 AS CODI is operational. Premium collection began in April 2024, and the scheme is live, delivering on its mandate.
Is it working?
Policy design and implementation are strong: CODI now provides transparent, rules‑based protection, aligning South Africa with international best practice and addressing a weakness noted in past FSAPs. The remaining tests are operational – whether CODI can execute timely payouts in a stress event, manage levies without over‑burdening smaller banks, and sustain effective communication so that coverage is understood but does not encourage moral hazard.
Actions
Actions taken: (i) CODI legally established and made operational; (ii) Deposit Insurance Regulations and the Statement of need and expected impact published; (iii) Financial Sector and Deposit Insurance Levies Act and amendments to Schedule 1 gazetted, setting CODI and supervisory levies; (iv) CODI launched publicly on 24–25 April 2024 with clear communication of the R100 000 coverage limit, estimated to fully protect about 95% of depositors; and (v) CODI and SARB have published detailed FAQs and technical guidance for banks and the public.
Are there plans?
Plans include: (i) ongoing payout‑readiness testing and data‑quality improvements with member banks; (ii) periodic review of coverage limits, eligible products and levy rates via amendments to Schedule 1 to the Levies Act and associated regulations; (iii) tighter integration of CODI processes with the resolution and ELA framework; and (iv) targeted public‑awareness and literacy campaigns, to ensure depositors understand what is and is not covered.
Is it on the agenda?
The 2026 Budget Review describes CODI and the DIS as key components of the financial‑stability and inclusion architecture, emphasising that deposit insurance helps protect vulnerable depositors and supports a more competitive banking sector by providing a common safety net for smaller banks. SARB underscore that CODI was a major milestone in implementing the Twin Peaks and resolution‑framework reforms.
Goals
To enhance the stabilibity and public confidence in South Africa's financial system by providing explicit, pre-funded protection for retail depositors against the risk of bank failure.
References
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)
Summary
CODI is one of a number of Twin Peaks regulatory reforms introduced after the 2008-09 global financial crisis. It is part of the wider financial sector safety net that includes the Prudential Authority (PA), which supervises financial institutions; the Financial Sector Conduct Authority (FSCA) that ensures that financial institutions treat their customers fairly and transparently; and the SARB, the lender of last resort and resolution authority responsible for the orderly resolution of failed designated institutions. CODI is designed to safeguard the most vulnerable depositors in our society. It provides cover of up to R100,000 to each qualifying depositor per bank in the event of a bank’s collapse. This coverage limit fully protects nine out of 10 qualifying depositors nationwide.
Prior to the introduction of CODI, South Africa did not have an explicit deposit insurance scheme, compelling the government to use taxpayers’ money to compensate affected depositors on a case-by-case basis. COMPLETE: We stopped tracking this reform at end-June 2025 AS CODI is operational. Premium collection began in April 2024, and the scheme is live, delivering on its mandate.
Is it working?
Policy design and implementation are strong: CODI now provides transparent, rules‑based protection, aligning South Africa with international best practice and addressing a weakness noted in past FSAPs. The remaining tests are operational – whether CODI can execute timely payouts in a stress event, manage levies without over‑burdening smaller banks, and sustain effective communication so that coverage is understood but does not encourage moral hazard.
Actions
Actions taken: (i) CODI legally established and made operational; (ii) Deposit Insurance Regulations and the Statement of need and expected impact published; (iii) Financial Sector and Deposit Insurance Levies Act and amendments to Schedule 1 gazetted, setting CODI and supervisory levies; (iv) CODI launched publicly on 24–25 April 2024 with clear communication of the R100 000 coverage limit, estimated to fully protect about 95% of depositors; and (v) CODI and SARB have published detailed FAQs and technical guidance for banks and the public.
Are there plans?
Plans include: (i) ongoing payout‑readiness testing and data‑quality improvements with member banks; (ii) periodic review of coverage limits, eligible products and levy rates via amendments to Schedule 1 to the Levies Act and associated regulations; (iii) tighter integration of CODI processes with the resolution and ELA framework; and (iv) targeted public‑awareness and literacy campaigns, to ensure depositors understand what is and is not covered.
Is it on the agenda?
The 2026 Budget Review describes CODI and the DIS as key components of the financial‑stability and inclusion architecture, emphasising that deposit insurance helps protect vulnerable depositors and supports a more competitive banking sector by providing a common safety net for smaller banks. SARB underscore that CODI was a major milestone in implementing the Twin Peaks and resolution‑framework reforms.
Goals
To enhance the stabilibity and public confidence in South Africa's financial system by providing explicit, pre-funded protection for retail depositors against the risk of bank failure.
References
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)
Summary
Assessment of the state of financial inclusion in SA providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes, and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes, and the impact on economic well-being through changes in income levels, poverty rates, and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints, and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness.
Actions
An intra-government financial inclusion sub-working group (FISWG) and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore and to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes, and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes, and the impact on economic well-being through changes in income levels, poverty rates, and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints, and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness.
Actions
An intra-government financial inclusion sub-working group (FISWG) and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore and to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
The intra-government financial inclusion sub-working group (FISWG)and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
Forms part of the National Implementation Strategy and Action Plan which is being developed.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
The intra-government financial inclusion sub-working group (FISWG)and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
Forms part of the National Implementation Strategy and Action Plan which is being developed.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
The intra-government financial inclusion sub-working group (FISWG)and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
Forms part of the National Implementation Strategy and Action Plan which is being developed.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
The intra-government financial inclusion sub-working group (FISWG)and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
Forms part of the National Implementation Strategy and Action Plan which is being developed.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
The intra-government financial inclusion sub-working group (FISWG)and financial inclusion (FI) forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2)Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
Forms part of the National Implementation Strategy and Action Plan which is being developed.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Summary
Deliverables include: (i) a modernised payments and market‑access regime that allows non‑bank and fintech providers to compete in SME payments, credit and working‑capital solutions; (ii) enhanced credit‑information sharing and conduct rules under COFI and related standards, improving SME credit assessment and dispute resolution; (iii) public and blended‑finance vehicles (eg, Infrastructure Fund, guarantee schemes) that deliberately crowd in private finance for SME‑rich supply chains; and (iv) regulatory support for innovation through the Intergovernmental Fintech Working Group (IFWG) Innovation Hub and sandbox, which SMEs and fintechs can use to test new models.
COMPLETE: We stopped tracking this reform at end-June 2025; Improved access is part of wider financial inclusion strategies.
Is it working?
The enabling framework for SME finance and innovation is improving, especially on payments access and fintech‑support. However, on-the-ground access and competition are still uneven, with SMEs citing collateral requirements, risk aversion and slow public‑sector payments as persistent obstacles. The success of this reform will depend on the actual implementation of activity‑based licensing, the effectiveness of blended‑finance and guarantee schemes, and whether COFI and credit‑information reforms translate into more tailored, risk‑sensitive SME products rather than generic lending requirements.
Actions
To date, government and regulators have: (i) launched and maintained the IFWG Innovation Hub and Regulatory Sandbox, which has admitted SME‑focused fintechs; (ii) laid the groundwork for NPU and activity‑based licensing; (iii) issued key prudential and conduct reforms (Basel III, COFI, credit‑information enhancements) that underlie SME‑finance risk management and fairness; and (iv) channelled infrastructure and green‑finance initiatives in ways that create procurement and financing opportunities for SMEs.
Are there plans?
Planned measures include: (i) implementation of activity‑based payments licensing and NPU from H2 2026, explicitly opening up acquiring and initiation to non‑bank providers that often serve SMEs; (ii) further credit‑information reforms and SME‑oriented conduct standards under COFI; (iii) expansion of blended‑finance and guarantee programmes targeting SME participation in infrastructure and green‑transition projects; and (iv) continued operation and refinement of the IFWG sandbox, prioritising SME‑relevant innovations such as alternative credit‑scoring, digital factoring and supply‑chain platforms.
Is it on the agenda?
The 2026 Budget emphasises SMEs and competition as part of the growth strategy, pointing to financial sector reforms that lower barriers to entry for new providers and improve SME access to payment rails, credit and risk‑management tools. Fintech‑policy briefings and IFWG communications echo that activity‑based regulation, sandbox support and open infrastructure are intended to make it easier for new entrants – including SME‑focused platforms – to operate.
Goals
To expand access to finance for SMEs and new business models, promote diversification of funding sources and providers, and support innovation and competition in financial services while maintaining prudential soundness and consumer protection.
Departments / Govt Institutions
Summary
National Treasury and partners have conducted large-scale diagnostics of small and medium enterprise (SME) funding gaps. Reforms targeting traditional credit scoring, expanded loan product ranges, risk-sharing models, digital onboarding and open finance pilots are under way. The National Credit Act (NCA) Amendment Regulations (which would have strengthened credit reporting and data-sharing for small businesses) were published in August 2025 but were withdrawn in September 2025 for further stakeholder engagement. The revised process is expected to restart in late 2026.
View DetailsIs it working?
Consultations and pilots are progressing. Mainstream bank lending to SMEs remains below target - a persistent gap reflecting both banks' reluctance to lend to high-risk small businesses without collateral and SMEs' inability to produce the financial records needed to access formal credit. Risk-sharing reforms and digital onboarding are expected to scale in 2026 and beyond. The NCA amendment delay is a setback. The open finance pilot results will be key for the next reform phase.
Actions
NT, FSCA and banks collaborate on bank reporting upgrades, credit guarantee scheme reform, SME recordkeeping support, digital enablement and ongoing policy review. To date, government and regulators have: (i) launched and maintained the IFWG Innovation Hub and Regulatory Sandbox, which has admitted SME‑focused fintechs; (ii) laid the groundwork for NPU and activity‑based licensing; (iii) issued key prudential and conduct reforms (Basel III, COFI, credit‑information enhancements) that underlie SME‑finance risk management and fairness; and (iv) channelled infrastructure and green‑finance initiatives in ways that create procurement and financing opportunities for SMEs.
Are there plans?
Current plans focus on data sharing initiatives, open finance pilots, iterative product development and new NCA amendments. Banks and development finance institutions (DFIs) are launching new SME-focused products in partnership with fintechs. Other measures include: (i) implementation of activity‑based payments licensing and NPU from 2H-26, explicitly opening up acquisitions and initiation to non‑bank providers that often serve SMEs; (ii) further credit‑information reforms and SME‑oriented conduct standards under COFI; (iii) expansion of blended‑finance and guarantee programmes targeting SME participation in infrastructure and green‑transition projects; and (iv) continued operation and refinement of the IFWG sandbox, prioritising SME‑relevant innovations such as alternative credit‑scoring, digital factoring and supply‑chain platforms.
Is it on the agenda?
Yes. SME inclusion, market diversification and innovation measures are embedded in NT and FSCA annual plans, highlighted in G20/GPFI reports and ongoing industry consultations. The 2026 Budget emphasises SMEs and competition as part of the growth strategy, pointing to financial sector reforms that lower barriers to entry for new providers and improve SME access to payment rails, credit and risk‑management tools. Fintech‑policy briefings and IFWG communications echo that activity‑based regulation, sandbox support and open infrastructure are intended to make it easier for new entrants – including SME‑focused platforms – to operate.
Goals
To expand access to finance for SMEs and new business models, promote diversification of funding sources and providers, and support innovation and competition in financial services while maintaining prudential soundness and consumer protection.
Departments / Govt Institutions
Summary
National Treasury and partners have conducted large-scale diagnostics of small and medium enterprise (SME) funding gaps. Reforms targeting traditional credit scoring, expanded loan product ranges, risk-sharing models, digital onboarding and open finance pilots are under way. The National Credit Act (NCA) Amendment Regulations (which would have strengthened credit reporting and data-sharing for small businesses) were published in August 2025 but were withdrawn in September 2025 for further stakeholder engagement. The revised process is expected to restart in late 2026.
View DetailsIs it working?
Consultations and pilots are progressing. Mainstream bank lending to SMEs remains below target - a persistent gap reflecting both banks' reluctance to lend to high-risk small businesses without collateral and SMEs' inability to produce the financial records needed to access formal credit. Risk-sharing reforms and digital onboarding are expected to scale in 2026 and beyond. The NCA amendment delay is a setback. The open finance pilot results will be key for the next reform phase.
Actions
NT, FSCA and banks collaborate on bank reporting upgrades, credit guarantee scheme reform, SME recordkeeping support, digital enablement and ongoing policy review. To date, government and regulators have: (i) launched and maintained the IFWG Innovation Hub and Regulatory Sandbox, which has admitted SME‑focused fintechs; (ii) laid the groundwork for NPU and activity‑based licensing; (iii) issued key prudential and conduct reforms (Basel III, COFI, credit‑information enhancements) that underlie SME‑finance risk management and fairness; and (iv) channelled infrastructure and green‑finance initiatives in ways that create procurement and financing opportunities for SMEs.
Are there plans?
Current plans focus on data sharing initiatives, open finance pilots, iterative product development and new NCA amendments. Banks and development finance institutions (DFIs) are launching new SME-focused products in partnership with fintechs. Other measures include: (i) implementation of activity‑based payments licensing and NPU from 2H-26, explicitly opening up acquisitions and initiation to non‑bank providers that often serve SMEs; (ii) further credit‑information reforms and SME‑oriented conduct standards under COFI; (iii) expansion of blended‑finance and guarantee programmes targeting SME participation in infrastructure and green‑transition projects; and (iv) continued operation and refinement of the IFWG sandbox, prioritising SME‑relevant innovations such as alternative credit‑scoring, digital factoring and supply‑chain platforms.
Is it on the agenda?
Yes. SME inclusion, market diversification and innovation measures are embedded in NT and FSCA annual plans, highlighted in G20/GPFI reports and ongoing industry consultations. The 2026 Budget emphasises SMEs and competition as part of the growth strategy, pointing to financial sector reforms that lower barriers to entry for new providers and improve SME access to payment rails, credit and risk‑management tools. Fintech‑policy briefings and IFWG communications echo that activity‑based regulation, sandbox support and open infrastructure are intended to make it easier for new entrants – including SME‑focused platforms – to operate.
Goals
To expand access to finance for SMEs and new business models, promote diversification of funding sources and providers, and support innovation and competition in financial services while maintaining prudential soundness and consumer protection.
Departments / Govt Institutions
Summary
Assessment of the state of financial inclusion in SA providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes, and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes, and the impact on economic well-being through changes in income levels, poverty rates, and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints, and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness.
Actions
An intra-government financial inclusion sub-working group and financial inclusion forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore, to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2) Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit, and insurance, delivered in a responsible and sustainable way.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Assessment of the state of financial inclusion in SA providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes, and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes, and the impact on economic well-being through changes in income levels, poverty rates, and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints, and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness.
Actions
An intra-government financial inclusion sub-working group and financial inclusion forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore, to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2) Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit, and insurance, delivered in a responsible and sustainable way.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
While the groundwork has been laid, and the structures are in the process of being established, full implementation is ongoing, with the main actions and frameworks expected to unfold in the coming months and years.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2) Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
An intra-government financial inclusion sub-working group and financial inclusion forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore, to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit, and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
While the groundwork has been laid, and the structures are in the process of being established, full implementation is ongoing, with the main actions and frameworks expected to unfold in the coming months and years.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2) Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
An intra-government financial inclusion sub-working group and financial inclusion forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore, to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit, and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Assessment of the state of financial inclusion in SA, providing principles to underpin the sustained improvement of inclusion. This will be based on three pillars (two strategic policy pillars and one supporting pillar).
View DetailsIs it working?
Substantively, determining the effectiveness of financial inclusion reforms in South Africa will involve assessing various indicators such as bank account ownership, proximity to financial institutions and the usage of digital financial services. It will require tracking savings and credit activities, transaction volumes and the cost and diversity of financial services. Furthermore, evaluating financial literacy, the implementation of educational programmes and the impact on economic wellbeing through changes in income levels, poverty rates and SME growth will be crucial. Additionally, measuring inclusivity across demographics, comparing rural and urban inclusion, assessing consumer protection frameworks, monitoring customer complaints and observing behavioural changes in savings and investments will be critical. Therefore, conducting national surveys and impact studies, and correlating financial inclusion progress with economic indicators like GDP growth and employment rates, will ultimately provide a comprehensive view of the reforms' effectiveness. While the country has a long way to go on financial inclusion, a recent study by the Commission for Gender Equality published in December 2023 revealed some progress with women having improved access to finance, ownership of private assets as well as access to public assets.
Actions
While the groundwork has been laid, and the structures are in the process of being established, full implementation is ongoing, with the main actions and frameworks expected to unfold in the coming months and years.
Are there plans?
Financial inclusion to be underpinned by the three policy pillars and priorities, namely; 1) Deepening financial inclusion of individuals. 2) Extending access of financial services to SMEs. 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
Is it on the agenda?
An intra-government financial inclusion sub-working group and financial inclusion forum is to be established in 2024 to lead the development (in partnership with NT) of the National Implementation Strategy and Action Plan. Furthermore, to measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework will also be developed in 2024.
Goals
When effectively implemented, financial inclusion reform in South Africa should aim to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The ultimate objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit, and insurance, delivered in a responsible and sustainable way.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance, delivered in a responsible and sustainable way. In 2024, an intra-government financial inclusion sub-working group and financial inclusion forum was established to lead the development of the National Implementation Strategy and Action Plan in partnership with National Treasury. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework was developed.
View DetailsIs it working?
Early indications are that the financial inclusion strategy is paying off: according to National Treasury, 1.2 million basic accounts opened in 2024 and around 57,000 SME loans were facilitated.
Actions
While the groundwork has been laid and the structures are in the process of being established, full implementation is ongoing, with the main actions and frameworks expected to unfold in the coming months and years.
Are there plans?
The plan is to underpin financial inclusion by three policy pillars and priorities: 1) Deepening financial inclusion of individuals, 2) Extending access of financial services to SMEs, 3) Improving the enabling foundations - leveraging a more diversified provider and distribution database. National Treasury is developing a new national strategy in 2025, building on the 2023 policy paper. Implementation is ongoing, with new targets and tiered account requirements being phased in.
Is it on the agenda?
Yes, financial inclusion is on National Treasury's agenda.
Goals
Financial inclusion reform in South Africa aims to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The goal is for 90% of the adult population to have access to formal financial services by 2027.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance -- delivered in a responsible and sustainable way. In 2024, an intra-government financial inclusion sub-working group and financial inclusion forum was established to lead the development of the National Implementation Strategy and Action Plan in partnership with National Treasury. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework was developed.
View DetailsIs it working?
Early indications are that the financial inclusion strategy is paying off: according to National Treasury, 1.2 million basic bank accounts opened in 2024 and around 57,000 SME loans were facilitated. Initial phase targets were met on product rollout and consumer outreach and usage targets are improving, but gaps remain in certain vulnerable communities.
Actions
While the groundwork has been laid and the structures are being established, full implementation is ongoing, with the main actions and frameworks expected to unfold in the coming months and years. National Treasury coordinates with FSCA, SARB, and the NPS Act reform. Sector outreach targets women, youth and unbanked communities while progress is being evaluated quarterly in financial sector updates.
Are there plans?
The plan is to underpin financial inclusion by three policy pillars and priorities: 1) Deepening financial inclusion of individualsrn2) Extending access of financial services to SMEsrn3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
National Treasury is developing a new national strategy in 2025, building on the 2023 policy paper. Implementation is ongoing, with new targets and tiered account requirements being phased in. Treasury plans annual reporting, regular updates to Parliament, sector audits and consumer outreach. Phased implementation runs to 2026 with stakeholder consultations ongoing.
Is it on the agenda?
Yes, financial inclusion is on National Treasury's agenda marking this reform as a Cabinet priority. Updates are featured in annual sector reviews, G20 reporting and FSCA consumer protection communications.
Goals
Financial inclusion reform in South Africa aims to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The goal is for 90% of the adult population to have access to formal financial services by 2027, to be achieved by enhancing financial stability, protecting depositors and improving access to finance for individuals and SMEs.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The objective of financial inclusion for individuals in a country like South Africa is to ensure that all individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes transactions, payments, savings, credit and insurance -- delivered in a responsible and sustainable way. In 2024, an intra-government financial inclusion sub-working group and financial inclusion forum was established to lead the development of the National Implementation Strategy and Action Plan in partnership with National Treasury. To measure, monitor and assess the impact of the strategy, a Financial Inclusion Monitoring and Evaluation framework was developed.
View DetailsIs it working?
Early indications are that the financial inclusion strategy is paying off: according to National Treasury, 1.2 million basic bank accounts opened in 2024 and around 57,000 SME loans were facilitated. Initial phase targets were met on product rollout and consumer outreach and usage targets are improving, but gaps remain in certain vulnerable communities.
Actions
While the groundwork has been laid and the structures are being established, full implementation is ongoing, with the main actions and frameworks expected to unfold in the coming months and years. National Treasury coordinates with FSCA, SARB, and the NPS Act reform. Sector outreach targets women, youth and unbanked communities while progress is being evaluated quarterly in financial sector updates.
Are there plans?
The plan is to underpin financial inclusion by three policy pillars and priorities: 1) Deepening financial inclusion of individualsrn2) Extending access of financial services to SMEsrn3) Improving the enabling foundations - leveraging a more diversified provider and distribution database.
National Treasury is developing a new national strategy in 2025, building on the 2023 policy paper. Implementation is ongoing, with new targets and tiered account requirements being phased in. Treasury plans annual reporting, regular updates to Parliament, sector audits and consumer outreach. Phased implementation runs to 2026 with stakeholder consultations ongoing.
Is it on the agenda?
Yes, financial inclusion is on National Treasury's agenda marking this reform as a Cabinet priority. Updates are featured in annual sector reviews, G20 reporting and FSCA consumer protection communications.
Goals
Financial inclusion reform in South Africa aims to create an enabling environment for previously disadvantaged individuals to have access to financial resources to enhance their livelihoods through employment and investment opportunities. The goal is for 90% of the adult population to have access to formal financial services by 2027, to be achieved by enhancing financial stability, protecting depositors and improving access to finance for individuals and SMEs.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
National Treasury's Financial Inclusion Policy sets clear targets for product access, payment system usage and financial literacy, with a phased implementation strategy running from 2024 through 2026. Market conduct reforms, digital account opening, low-cost e-wallet solutions, the PayShap real-time payment platform and upgraded electronic identity verification processes are the main delivery vehicles. Outreach programmes target women, youth and unbanked communities. Progress is evaluated quarterly.
View DetailsIs it working?
Initial phase targets have been met on product rollout and consumer outreach. Usage targets are improving, but gaps remain in certain vulnerable communities, particularly rural areas and those without smartphones or reliable internet access. The combination of PayShap, low-cost digital accounts and improved electronic identity verification is creating meaningful inclusion outcomes at scale.
Actions
NT coordinates with the FSCA, SARB and the NPS Act reforms. Sector outreach targets women, youth and unbanked communities. PayShap is live and expanding while progress is evaluated quarterly in financial sector reviews.
Are there plans?
Planned actions include: (i) implementing activity‑based payments licensing and the National Payments Utility from H2 2026, enabling fintechs and non‑banks to provide low‑cost services; (ii) further conduct standards and COFI implementation focusing on treating customers fairly, fair pricing and simpler products; (iii) continued refinement of the two‑pot system and savings incentives, with specific communication targeting low‑income members; and (iv) better data and monitoring of inclusion outcomes (access, usage, quality, financial health) through National Treasury and FSCA reporting.
Is it on the agenda?
Yes. NT marks this as a cabinet priority with updates in annual sector reviews, G20 reporting and FSCA consumer protection communications. The 2026 Budget positions inclusion as a core outcome of financial sector reform, linking payments modernisation, retirement‑reform, conduct legislation and deposit insurance to inclusion goals. Budget commentary from the industry stresses that higher savings incentives and the two‑pot system can broaden participation if complemented by effective advice and low‑cost products, while instant‑payments infrastructure and open access for non‑banks should help lower transaction costs and improve reach.
Goals
To extend access to basic financial services to unbanked individuals and small businesses, and to protect ordinary South Africans' deposits if a bank fails. This will ensure South Africa's financial system serves all segments of the population, not just the formally employed and financially established.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
National Treasury's Financial Inclusion Policy sets clear targets for product access, payment system usage and financial literacy, with a phased implementation strategy running from 2024 through 2026. Market conduct reforms, digital account opening, low-cost e-wallet solutions, the PayShap real-time payment platform and upgraded electronic identity verification processes are the main delivery vehicles. Outreach programmes target women, youth and unbanked communities. Progress is evaluated quarterly.
View DetailsIs it working?
Initial phase targets have been met on product rollout and consumer outreach. Usage targets are improving, but gaps remain in certain vulnerable communities, particularly rural areas and those without smartphones or reliable internet access. The combination of PayShap, low-cost digital accounts and improved electronic identity verification is creating meaningful inclusion outcomes at scale.
Actions
NT coordinates with the FSCA, SARB and the NPS Act reforms. Sector outreach targets women, youth and unbanked communities. PayShap is live and expanding while progress is evaluated quarterly in financial sector reviews.
Are there plans?
Planned actions include: (i) implementing activity‑based payments licensing and the National Payments Utility from H2 2026, enabling fintechs and non‑banks to provide low‑cost services; (ii) further conduct standards and COFI implementation focusing on treating customers fairly, fair pricing and simpler products; (iii) continued refinement of the two‑pot system and savings incentives, with specific communication targeting low‑income members; and (iv) better data and monitoring of inclusion outcomes (access, usage, quality, financial health) through National Treasury and FSCA reporting.
Is it on the agenda?
Yes. NT marks this as a cabinet priority with updates in annual sector reviews, G20 reporting and FSCA consumer protection communications. The 2026 Budget positions inclusion as a core outcome of financial sector reform, linking payments modernisation, retirement‑reform, conduct legislation and deposit insurance to inclusion goals. Budget commentary from the industry stresses that higher savings incentives and the two‑pot system can broaden participation if complemented by effective advice and low‑cost products, while instant‑payments infrastructure and open access for non‑banks should help lower transaction costs and improve reach.
Goals
To extend access to basic financial services to unbanked individuals and small businesses, and to protect ordinary South Africans' deposits if a bank fails. This will ensure South Africa's financial system serves all segments of the population, not just the formally employed and financially established.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)