Tag: Banking Association of South Africa (BASA)

SME development has been on the agenda since the days of the Mandela presidency - and yet, South Africa’s small businesses continue to founder. Their precarious state has been placed under even more pressure by unforeseen events such as the pandemic lockdowns and July riots, and, with our unemployment rate now standing at more than 30%, it is more important than ever to take action.

The Medium Term Budget Policy Statement (MTBPS) 2020 was tabled to Parliament on 11 November 2021 by South African Finance Minister Enoch Godongwana.

Keep up to date on the most important Financial Services Regulation developments in South Africa in June 2021.

When South Africa entered into a hard and extended national lockdown on 27 March 2020, banks responded rapidly and empathetically to their account holders' financial crisis. According to the Banking Association of South Africa (BASA), as at 24 October 2020, banks had provided over R50 billion in financial relief – R33,61 billion in payment breaks on credit agreements and R16,71 billion under the loan guarantee scheme – to South African businesses and individuals.

Individual consumers and businesses will no longer be able to cash cheques in South Africa. This follows a joint announcement by the SARB, FSCA, PASA and BASA which confirmed that the issuing and acceptance or collection of cheques will cease from 31 December 2020. 

On 10 December 2020, the Competition Commission issued the final guidelines for competition in the South African Automotive Aftermarket (Automotive Guidelines). The Automotive Guidelines are forward thinking as the measures proposed therein apply not only to internal combustion engines (ICE) but also to electric vehicles (EV's) and to propulsion by other means (i.e. hybrid).

The global COVID-19 pandemic has provided critical leadership lessons for governments and organisations around the world. The crisis affirmed the importance of bold, decisive decision-making in the face of unprecedented challenges, while also highlighting the importance of agile thinking and adaptability.

In response to the COVID-19 emergency, the South African Reserve Bank (Reserve Bank) and the South African financial sector regulators, the Prudential Authority and the Financial Sector Conduct Authority (FSCA), have implemented several mitigation measures to support the economy and companies.

Hot on the heels of President Ramaphosa telling the European Parliament on 14 November  that South African land reforms will be enacted in adherence to the country’s Constitution, the joint constitutional review committee formally recommended that section 25 of the Constitution be amended to allow for expropriation of land without compensation.

The whole of South Africa is still in shock after the South African Reserve Bank has announced that SA is in a technical recession following two consecutive quarters of negative growth. Most analysts had expected a moderate increase in GDP.