South Africa Aims to Achieve Financial Inclusion for All

The National Treasury has unveiled a comprehensive policy aimed at deepening financial inclusion for individuals and extending access to financial services for Small, Medium, and Micro-Enterprises (SMMEs).

Policy Objectives

• Promote the beneficial use of transactional accounts
• Position remittances as a springboard for further financial inclusion
• Support increased formal savings for low-income earners
• Prioritize appropriate credit for assets and investment over consumption
• Increase the financial inclusion impact of social grant distribution
• Improve efficiencies in the onboarding of financial services clients

Focus Areas for SMMEs

• Broaden the range of financing instruments available to them
• Promote the use of transaction accounts and payment services
• Provide suitable insurance options

Building a Diversified Provider and Distribution Base

• Build appropriate payment options
• Strengthen the credit infrastructure
• Enable and strengthen new and small financial institutions
• Explore the role of the state in supporting financial inclusion

Leveraging Fintech Disruptors

• Promote and support financial inclusion through fintech disruptors
• Increase the number of agents providing financial services

Role of the Financial Sector Conduct Authority (FSCA)

• Develop a strong national focus on financial literacy and market conduct
• Improve the use of financial products and services by promoting financial literacy and good market conduct

Conclusion

The National Treasury’s policy aims to create an inclusive financial sector that benefits all South Africans. By promoting financial inclusion, the government hopes to increase economic opportunities, reduce poverty, and promote sustainable development.