Absa Group recognises that its success is interlinked with the wellbeing of the societies in which it operates. The company is committed to finding local solutions to uniquely local challenges, with emphasis on enabling greater socioeconomic prosperity. Its developmental focus areas, which are aligned to the goals of the 2030 Agenda for Sustainable Development, include supporting the education ecosystem and entrepreneurship, improving access to financial services, and environmental stewardship in its operations and lending practices.
Strengthening the education ecosystem
According to Statistics South Africa, one in three South Africans between the ages of 15 and 24 are unemployed and not enrolled in educational programmes or involved in training initiatives. Lack of skills among youth leads to long-term unemployment for many, exacerbating inequality. Absa is committed to investing in developing young talent and, in doing so, contributing to improving the employability of South Africa’s out-of-work youth. The company aims to promote economic inclusion while developing a skilled workforce equipped to succeed in the workplace of the future.
The Group also creates platforms and opportunities to address knowledge gaps that increase the employability prospects of young people, and support institutions and administrators with technical assistance to improve the delivery of quality education.
ReadyToWork is Absa’s free e-learning platform that provides four soft skills modules – work, money, people and entrepreneurship – to improve employment or self- employment prospects for job seekers. There is specific focus on the placement component of the programme, with young people receiving work exposure, internships
or placement opportunities through Absa’s employability partnerships with Afrika Tikkun, Catalyx, Lulaway, GoodWork Foundation and Columbia Leadership Academy in South Africa, and universities, non-profit organisations and trade associations in other regions of operations.
Absa continues to provide financial support to tertiary students, aiming to boost the availability of scarce critical skills and opportunity for previously disadvantaged youth. The indirect impact of the sponsorship programme is to uplift families and communities.
In the 2017/18 financial year, R266 million in education disbursements benefited:
- 4 142 students who received scholarships, across 100 universities
- 1 112 students from 50 TVET colleges who completed their workplace exposure with Absa
- 2 107 governing body members from 656 schools in South Africa who received training in financial management and governance
- 9 298 young people in South Africa and 4 223 in Absa’s regional markets who received work exposure, internships or placement opportunities
Supporting entrepreneurship
Small and medium enterprises (SMEs) create jobs and foster innovation, playing a vital role in advancing inclusive and sustainable economic growth. Absa assists emerging SMEs in South Africa to grow and prosper through various enterprise development initiatives, including offering innovative financial solutions and business development support services. Absa also offers development funding solutions to qualifying emerging SMEs in collaboration with corporate clients and other partners. Through the company’s structured approach to value chain funding, it is able to offer solutions to emerging businesses that would not otherwise qualify for traditional finance. These blended financing solutions combine commercial funding with more affordable funds and guarantees from third parties, to provide more affordable financing rates.
There are also several high-impact, high-value business solutions available, such as the Absa Enterprise Development Programme and the Absa Accelerator. The Accelerator is a four-month programme for Absa-banked SMEs with a turnover between R500 000 and R1 million. For companies with a turnover of over R1 million, Absa offers a six-month one-on-one mentorship and coaching programme.
However, to build a successful, competitive and sustainable business, entrepreneurs need more than access to finance. They need intellectual capital such as business skills, information and access to networks and markets. Absa provides training and business development support to suppliers and entrepreneurs. These include training activities, strategic events, and partnerships with non-profit organisations, global development organisations and government. Absa’s Procurement Portal unlocks numerous opportunities for SMEs to penetrate existing markets. The portal is a virtual marketplace that connects emerging SME suppliers and corporate procurement teams.
In the 2017/18 financial year:
- 9 550 entrepreneurs benefited from one or more business development support intervention/s
- 974 SMEs benefited from the Absa Accelerator
- 550 Absa-banked businesses benefited from the mentorship and coaching programme
- R156 million was invested into supplier development for SMEs in Absa’s supply chain
- R88.3 million of the supplier development contribution was lending at preferential rates, including zero-rated loans
- R371 million was invested in development loans to SMEs in the corporate value chains across Absa’s African markets
Improving access to financial services
Access to finance empowers people and financial inclusion is critical for accelerating inclusive economic growth, creating jobs and addressing inequality. Absa’s entry market range of products, such as Group Savings and PEPmoney (South Africa), Atlas (Ghana) and Motshelo (Botswana), are increasing financial accessibility. The company enables digital and non-digital access to underserved consumers through real banking and value-add products and services. In support of the South African government’s affordable housing development projects, Absa increased its loans to R12.8 billion, with loan customers benefiting from the company’s borrower education programme, covering key aspects of home ownership, home maintenance and personal financial matters.
Through its consumer education programme Absa empowers individuals to make informed choices and improve their lives through responsible personal financial management.
The company also targets schools and unemployed or low-income individuals, and supported the Banking Association of South Africa’s Starsaver programme directed at schoolchildren in grades seven to nine. Absa also assisted the Association of Savings and Investments in implementing the Saver Waya Waya financial literacy programme for TVET college students.
Absa Regional Operations also conducted financial literacy training in Ghana, Uganda, Zambia, Botswana, the Seychelles and Mauritius.
As Absa looks to the future, we strive to lead the conversation and action on the biggest challenges facing Africa. The company is committed to investing its time, expertise and views to the causes that it believes can have the greatest impact, and will drive thought leadership, promote sustainable practices, create value and facilitate strategic engagements to this end.
In the 2017/18 financial year:
- R1 140 million in affordable housing loans was accessed by 3 519 customers from households earning less than R23 300 per month
- R1 697 million was provided to 47 150 customers in micro and personal loans for building
- R32.3 million was invested in consumer education training for 100 746 customers across South Africa
- 4 308 customers benefited from Absa’s borrower education programme
- 100 746 South Africans received consumer financial education
- 7 168 individuals received financial literacy training across Absa’s regional operations
- 4 318 consumers in Ghana attended financial literacy workshops
- 2 380 consumers in Uganda received financial literacy training
- 230 in Zambia attended financial literacy events and exhibitions
As Absa looks to the future, we strive to lead the conversation and action on the biggest challenges facing Africa. The company is committed to investing its time, expertise and views to the causes that it believes can have the greatest impact, and will drive thought leadership, promote sustainable practices, create value and facilitate strategic engagements to this end.
Sazini Mojapelo, Head of Citizenship https://www.absa.africa/absaafrica/citizenship/
