Financial Sector Development and Reform Program


The second phase of the Financial Sector Development and Reform Program (FSDRP 2) is to support the South African government in improving financial inclusion while at the same time strengthening financial stability.

Región/País Tema Período Presupuesto
Sudáfrica
Economic and financial policy
Private sector and entrepreneurship
01.06.2014 - 31.08.2023
CHF  4’622’250
Contexto

South Africa is characterized by a highly developed and well-capitalized financial sector, which, however, caters mainly to the advanced segment of the economy. The financial sector is highly concentrated ? relying on competition among four large banks ? and exists alongside a developing economy very similar to those found throughout Sub-Saharan Africa. The challenge for the financial sector is therefore twofold: To promote economic growth by expanding suitable products and services to meet the needs of the population and SMEs currently making little use of the banking system, while at the same time safeguarding financial stability.

Objetivos

The overall objective of this second program phase is to provide continued support to the South African government in strengthening financial stability and improving financial inclusion. It aims at making the financial sector reform efforts effective in order to serve the development needs of the economy as well as to contribute to South Africa?s medium-term growth and poverty reduction goals. Whereas phase 1 had a strong emphasis on building a sound regulatory and supervisory financial framework, FSDRP II will further consolidate and strengthen the government?s financial inclusion agenda. To advance the soundness and inclusiveness of the financial sector the program builds on three pillars: (i) transforming the market structure- (ii) safeguarding the financial system and consumers, and (iii) increasing finance for the real economy.

Efectos a medio plazo

(i) transforming the market structure through:

strengthened legal and supervisory framework in place

increased suitability and usage of financial services by underserviced segments

effective Cooperative Banks Development Agency (CBDA) in place

improved interoperability between service providers

increased financial inclusion through enhanced national payment system

more efficient grants payments

(ii) safeguarding of the financial system and consumers through:

increased confidence in the financial sector

strengthened resolution framework (system for the stabilisation of failed or failing banks)

established Financial Sector Conduct Authority (FSCA)

effective market conduct supervision

effective ombuds system in place

(iii) increasing finance for the real economy through:

increased contribution of SMEs to GDP

increased financing and financial services to SMEs

Resultados

Resultados previstos:  

(i) transforming the market structure:

regulatory and supervisory framework developed to support new entrants into sector

roles and functions of the Cooperative Banks Development Agency (CBDA) clarified and legal act amended

national strategy for interoperability approved and implemented

legal framework of the national payments system for non-bank participation and efficient grant distribution in place

(ii) safeguarding of the financial system and consumers:

finalizing the crisis management and resolution framework

guidelines and manuals for the deposit insurance scheme developed

publication of guidance notices and conduct standards for the Financial Sector Conduct Authority (FSCA)

ombuds council rules and system developed

advice the government on legal framework for financial technology

(iii) increasing finance for the real economy through:

strategy and action plan to improve access to finance for SMEs and more effictive local development finance institutions developed


Resultados de las fases anteriores:  

From 2014-2018, SECO supported the FSDRP phase 1 with a contribution of USD 4.2 million focusing on two pillars, financial stability and financial inclusion. Strong results have been achieved under the stability pillar (Pillar 1) by advancing key financial sector reforms in South Africa: a significant achievement was the adoption of the Financial Sector Regulation Act, through which prudential and market conduct oversight will be strengthened. These efforts are complemented by advances to introduce a modern financial institutions resolution regime and crisis management system (stabilisation of failed or failing banks) as well as establishing a deposit insurance system in line with international standards. Under the financial inclusion pillar (Pillar 2) significant strides were made and a lot of knowledge was gained on bank account usage, inequality in the use of financial services, limited access to finance for SMEs delivering. Phase 2 will build on the work established under phase 1.


Dirección / Officina Federal responsable SECO
Crédito Cooperación al desarrollo
Contrapartes del proyecto Contraparte del contrato
  • Banco Mundial - Banco Internacional de Reconstrucción y Fomento


Presupuesto Fase en curso Presupuesto suizo CHF    4’622’250 Presupuesto actual suizo ya emitido CHF    0 Presupuesto inclusive contrapartes del proyecto CHF    6’455’000
Fases del proyecto Fase 2 01.06.2014 - 31.08.2023   (Fase en curso) Fase 1 01.06.2014 - 30.06.2018   (Completed)