Overview Analysis of Policy and Related Measures for the Promotion of Financial Inclusion for the Poor and Low-Income Earners in South Africa
Keywords:
financial inclusion; financial exclusion; regulatory policies; low-income earners; financial servicesAbstract
The article discusses some policies and related measures that were adopted to directly or indirectly promote financial inclusion for the poor and low-income earners in South Africa. In this regard, it is prudent to note that most of the poor and low-income earners are still financially excluded from accessing basic financial products and financial services in South Africa. Owing to this, policies and measures such as the Reconstruction and Development Programme (RDP), the Broad-Based Black Economic Empowerment policy (BBEE), the Financial Services Charter (FSC), the mobile banking and Internet banking are discussed. This is done to investigate whether such measures are adequate enough and consistently enforced by the relevant enforcement authorities to promote financial inclusion for the poor and low-income earners in South Africa. Thereafter, possible recommendations to curb financial exclusion of the poor and low-income earners in South Africa are provided.
References
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Arun, T. and Kamath, R. (2015). “Financial Inclusion: Policies and Practices”. IIMB Management Review, 27, pp. 267-287.
Atkinson, A. and Messy, F. (2013). “Promoting Financial Inclusion through Financial Education: OECD/INFE Evidence, Policies and Practice”. OECD Working Papers on Finance, Insurance and Private Pensions, 34, pp. 1-55.
Bhurat, C. (2019). “Brics Nations and Financial Inclusion: A Comparative Study of the Brics Nations Using Various Finanical Inclusion Indicators”. IISES International Academic Conference, London, 21 May 2019, pp. 5-22.
Buku, M.W. and Meredith, M.W. (2013). “Safaricom and M-Pesa in Kenya: Financial Inclusion and Financial Integrity”. Washington Journal of Law, Technology & Arts, 8(3), pp. 375-400.
Carrim, Y., Fubbs. J. & Wicomb, A. (2017). “The Banking Association of South Africa Submission on Transformation in the Financial Sector”. The Banking Association South Africa, pp. 1-31.
Chitimira, H. and Ncube, M. (2020). “The Role of Regulatory Bodies and Other Role-Players in the Promotion of Financial Inclusion in South Africa”. Acta Universitatis Danubius Juridica, 16(1), pp. 24-37.
Claessens, S. (2006). “Access to Financial Services: A Review of the Issues and Public Policy Objectives”. The World Bank Research Observer, 21(2), pp. 207-240.
Coovadia, C. (2017). “Making Financial Markets Work for the Poor”. Finmark Trust Annual Report, pp. 1-15.
Coovadia, C. (2018). Annual Report. The Banking Association South Africa, pp. 1-36.
De Koker, L. (2020). “Financial Action Task Force Standards and Financial Inclusion: What Should Be Done – And What Should Not Be Done - To Improve the Alignment Between Integrity and Inclusion Policy Objectives?”. SSRN Paper, pp. 1-21.
Fanta, A.B. and Mutsonziwa, K. (2016). “Gender and Financial inclusion: Analysis of Financial Inclusion of Women in the SADC Region”. FinMark Trust Policy Research Paper, No. 1, pp. 1-31.
Finmark Trust. (2009). “The Mzansi Bank Account Initiative in South Africa”. Final Report, pp. 1-144.
Finmark Trust. (2009). “Investments and Saving Everyday Quality of Life”. Annual Report, pp. 1-11.
FinMark Trust. (2018). “Impact Evaluation of Savings Groups and Stokvels in South Africa: The Economic and Social Value of Group-Based Financial Inclusion”. FinMark Trust Report, pp. 1-103.
Hughes, N. and Lonie, S. (2007). “M-PESA: Mobile Money for the ‘Unbanked’ Turning Cellphones into 24-Hour Tellers in Kenya”. Innovations: Technology, Governance, Globalization, 2(1-2), pp. 63-81.
Ivatury, G. and Pickens, M. (2006). “Mobile Phone Banking and Low-Income Customers: Evidence from South Africa”. The World Bank, No. 38822, pp. 1-19.
Ismail, T. and Masinge, K. (2012). “Mobile Banking: Innovation for the Poor”. African Journal of Science, Technology, Innovation and Development, 4(3), pp. 98-127.
Keene, S.D. (2016). Threat Finance: Disconnecting The Lifeline of Organised Crime and Terrorism. London: Routledge.
Kessler, K., Ikdal, A., Naidoo, E., Portafaix, A., Hendrickson, J., Boje, A. & Rabec, D. (2017). “Improving Financial Inclusion in South Africa”. The Boston Consulting Group, pp. 1-15.
Kirsten, M. (2006). “Policy Initiatives to Expand Financial Outreach in South Africa”. World Bank/Brookings Institute Conference, Washington DC, 30-31 May 2006, pp. 1-12.
Kersop, M. and Du Toit, S.F. (2015). “Anti-Money Laundering Regulations and the Effective Use of Mobile Money in South Africa Part 2”. PER, 18(5), pp. 1637-1668.
Khandare, V.B. (2019). “Financial Inclusion: Empirical Study of Brics Countries”. International Journal of Social Science and Economic Research, 4(5), pp. 3319-3334.
Kostov, P., Arun, T. and Annim, S. (2015). “Access to Financial Services: The Case of the ‘Mzansi’ Account in South Africa”. Review of Development Finance, 5(1), pp. 34-42.
Kruger, M.C. and Kleynhans, E.P.J. (2014). “Effect of Black Economic Empowerment on Profit and Competitiveness of Firms in South Africa. Acta Commercii, 14(1), pp. 1-10.
Lawack, V.A. (2013). “Mobile Money, Financial inclusion and Financial Integrity: The South African Case”. Washington Journal of Law, Technology and Arts, 8(13), pp. 317-345.
Lourie, G. (2010). “Vodacom, Nedbank Launch Mobile Cash Service”. Mail & Guardian.
Luiz, J.M. (2002). “South African State Capacity and Post-Apartheid Economic Reconstruction”. International Journal of Social Economics, 29(8), pp. 594-614.
Maduku, D.K. (2013). “Predicting Retail Banking Customers’ Attitude Towards Internet Banking Services in South Africa”. Southern African Business Review, 17(3), pp. 76-100.
Mathe, K. (2017). “Future for South Africa’s National Development Plan (NDP) 2030”. Banking Association South Africa. Retrieved from https://www.banking.org.za/news-media/association-news/the-ndp-at-five-time-for-active-citizens-to-drive-development last accessed 5 July 2019.
Mbeki, M. (2009). Architects of Poverty: Why African Capitalism Needs Changing. Johannesburg: Picador.
Mlitwa, N. and Tshetsha, N. (2012). “Adoption of Cell-Phone Banking Among Low-Income Communities in Rural Areas of South Africa”. iBusiness, 4, pp. 362-370.
Mohieldin, M., Iqbal, Z., Rostom, A. and Fu, X. (2011). “The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (OIC) countries”. The World Bank Islamic Economics and Finance Working Group Policy Research Working Paper 5920, pp. 1-55.
Morgan, P.J. & Pontines, V. (2014). “Financial Stability and Financial Inclusion”. Asian Development Bank Institute Working Paper Series No. 488, pp. 1-16.
Morgan, P.J., Zhang, Y., & Kydyrbayev, D. (2018). “Overview of Financial Inclusion, Regulation, Financial Literacy, and Education in Central Asia and South Caucasus”. Asian Development Bank Institute Working Paper Series No.878, pp. 1-32.
Mujinga, M., Eloff, M.M. and Kroeze, J.H. (2018). “System Usability Scale Evaluation of Online Banking Services: A South African Study”. South African journal of science, 114(3-4), pp. 1-8.
Nanziri, E.L. (2016). “Financial Inclusion and Welfare in South Africa: Is there a Gender Gap?”. Journal of African Development, 18(2), pp. 109–134.
National Planning Commission. (2012). “National Development Plan 2030: Our Future Make it Work”. Government of South Africa, pp. 1-217.
Ncube, M. (2018). A Statutory Regulatory Analysis of Financial Inclusion for the Poor and Low-income Earners in South Africa. Master of Laws (LLM) dissertation: North West University, pp. 37-43.
Parliament of the Republic of South Africa. (1994). “White Paper on Reconstruction and Development”. Government Gazette, No. 16085, Ref: WPJ/1 994, Cape Town, 23 November 1994, pp. 1-82.
Pike, A., Puchert, J. and Chinyamurindi, W.T. (2018). “Analysing the Future of Broad-Based Black Economic Empowerment Through the Lens of Small and Medium Enterprises”. Acta Commercii, 18(1), pp.1-10.
Rogerson, C.M. (2008). “Tracking SMME Development in South Africa: Issues of Finance, Training and the Regulatory Environment”. Urban Forum, 19, pp. 61-81.
Rootman, C. & Antoni, X. (2015). “Investigating Financial Literacy to Improve Financial Behaviour Among Black Consumers”. Journal of Economic and Financial Sciences, 8(2), pp. 474-494.
Sibanda, S. & Sibanda, T. (2016). “Financial Education in South Africa: Overview of Key Initiatives and Actors”. International Labour Organisation Innovative Finance for Social Justice, pp. 1-36.
Singh, M.A. (2004). “Trends in South African Internet Banking”. Aslib Proceedings, 56(3), pp. 187-196.
Sithole, A. (2018). “Regulatory Strategy of the Financial Sector Conduct Authority: October 2018 to September 2021”. Financial Sector Conduct Authority, pp. 1-75.
Wentzel, J.P., Diatha, K.S. & Yadavalli, V.S.S. (2016). “An Investigation into Factors Impacting Financial Exclusion at the Bottom of the Pyramid in South Africa”. Development Southern Africa, 33(2), pp. 203-214.
Wessels, D. (1999). “South Africa’s Reconstruction and Development Programme: A Better Life for All”. Journal of Social Sciences, 3(4), pp. 235-243.
World Bank. (2013). “South Africa Economic Update: Focus on Financial Inclusion. South Africa Economic Update”. World Bank Economic Update, 4, pp. 1-42.
Arun, T. and Kamath, R. (2015). “Financial Inclusion: Policies and Practices”. IIMB Management Review, 27, pp. 267-287.
Atkinson, A. and Messy, F. (2013). “Promoting Financial Inclusion through Financial Education: OECD/INFE Evidence, Policies and Practice”. OECD Working Papers on Finance, Insurance and Private Pensions, 34, pp. 1-55.
Bhurat, C. (2019). “Brics Nations and Financial Inclusion: A Comparative Study of the Brics Nations Using Various Finanical Inclusion Indicators”. IISES International Academic Conference, London, 21 May 2019, pp. 5-22.
Buku, M.W. and Meredith, M.W. (2013). “Safaricom and M-Pesa in Kenya: Financial Inclusion and Financial Integrity”. Washington Journal of Law, Technology & Arts, 8(3), pp. 375-400.
Carrim, Y., Fubbs. J. & Wicomb, A. (2017). “The Banking Association of South Africa Submission on Transformation in the Financial Sector”. The Banking Association South Africa, pp. 1-31.
Chitimira, H. and Ncube, M. (2020). “The Role of Regulatory Bodies and Other Role-Players in the Promotion of Financial Inclusion in South Africa”. Acta Universitatis Danubius Juridica, 16(1), pp. 24-37.
Claessens, S. (2006). “Access to Financial Services: A Review of the Issues and Public Policy Objectives”. The World Bank Research Observer, 21(2), pp. 207-240.
Coovadia, C. (2017). “Making Financial Markets Work for the Poor”. Finmark Trust Annual Report, pp. 1-15.
Coovadia, C. (2018). Annual Report. The Banking Association South Africa, pp. 1-36.
De Koker, L. (2020). “Financial Action Task Force Standards and Financial Inclusion: What Should Be Done – And What Should Not Be Done - To Improve the Alignment Between Integrity and Inclusion Policy Objectives?”. SSRN Paper, pp. 1-21.
Fanta, A.B. and Mutsonziwa, K. (2016). “Gender and Financial inclusion: Analysis of Financial Inclusion of Women in the SADC Region”. FinMark Trust Policy Research Paper, No. 1, pp. 1-31.
Finmark Trust. (2009). “The Mzansi Bank Account Initiative in South Africa”. Final Report, pp. 1-144.
Finmark Trust. (2009). “Investments and Saving Everyday Quality of Life”. Annual Report, pp. 1-11.
FinMark Trust. (2018). “Impact Evaluation of Savings Groups and Stokvels in South Africa: The Economic and Social Value of Group-Based Financial Inclusion”. FinMark Trust Report, pp. 1-103.
Hughes, N. and Lonie, S. (2007). “M-PESA: Mobile Money for the ‘Unbanked’ Turning Cellphones into 24-Hour Tellers in Kenya”. Innovations: Technology, Governance, Globalization, 2(1-2), pp. 63-81.
Ivatury, G. and Pickens, M. (2006). “Mobile Phone Banking and Low-Income Customers: Evidence from South Africa”. The World Bank, No. 38822, pp. 1-19.
Ismail, T. and Masinge, K. (2012). “Mobile Banking: Innovation for the Poor”. African Journal of Science, Technology, Innovation and Development, 4(3), pp. 98-127.
Keene, S.D. (2016). Threat Finance: Disconnecting The Lifeline of Organised Crime and Terrorism. London: Routledge.
Kessler, K., Ikdal, A., Naidoo, E., Portafaix, A., Hendrickson, J., Boje, A. & Rabec, D. (2017). “Improving Financial Inclusion in South Africa”. The Boston Consulting Group, pp. 1-15.
Kirsten, M. (2006). “Policy Initiatives to Expand Financial Outreach in South Africa”. World Bank/Brookings Institute Conference, Washington DC, 30-31 May 2006, pp. 1-12.
Kersop, M. and Du Toit, S.F. (2015). “Anti-Money Laundering Regulations and the Effective Use of Mobile Money in South Africa Part 2”. PER, 18(5), pp. 1637-1668.
Khandare, V.B. (2019). “Financial Inclusion: Empirical Study of Brics Countries”. International Journal of Social Science and Economic Research, 4(5), pp. 3319-3334.
Kostov, P., Arun, T. and Annim, S. (2015). “Access to Financial Services: The Case of the ‘Mzansi’ Account in South Africa”. Review of Development Finance, 5(1), pp. 34-42.
Kruger, M.C. and Kleynhans, E.P.J. (2014). “Effect of Black Economic Empowerment on Profit and Competitiveness of Firms in South Africa. Acta Commercii, 14(1), pp. 1-10.
Lawack, V.A. (2013). “Mobile Money, Financial inclusion and Financial Integrity: The South African Case”. Washington Journal of Law, Technology and Arts, 8(13), pp. 317-345.
Lourie, G. (2010). “Vodacom, Nedbank Launch Mobile Cash Service”. Mail & Guardian.
Luiz, J.M. (2002). “South African State Capacity and Post-Apartheid Economic Reconstruction”. International Journal of Social Economics, 29(8), pp. 594-614.
Maduku, D.K. (2013). “Predicting Retail Banking Customers’ Attitude Towards Internet Banking Services in South Africa”. Southern African Business Review, 17(3), pp. 76-100.
Mathe, K. (2017). “Future for South Africa’s National Development Plan (NDP) 2030”. Banking Association South Africa. Retrieved from https://www.banking.org.za/news-media/association-news/the-ndp-at-five-time-for-active-citizens-to-drive-development last accessed 5 July 2019.
Mbeki, M. (2009). Architects of Poverty: Why African Capitalism Needs Changing. Johannesburg: Picador.
Mlitwa, N. and Tshetsha, N. (2012). “Adoption of Cell-Phone Banking Among Low-Income Communities in Rural Areas of South Africa”. iBusiness, 4, pp. 362-370.
Mohieldin, M., Iqbal, Z., Rostom, A. and Fu, X. (2011). “The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (OIC) countries”. The World Bank Islamic Economics and Finance Working Group Policy Research Working Paper 5920, pp. 1-55.
Morgan, P.J. & Pontines, V. (2014). “Financial Stability and Financial Inclusion”. Asian Development Bank Institute Working Paper Series No. 488, pp. 1-16.
Morgan, P.J., Zhang, Y., & Kydyrbayev, D. (2018). “Overview of Financial Inclusion, Regulation, Financial Literacy, and Education in Central Asia and South Caucasus”. Asian Development Bank Institute Working Paper Series No.878, pp. 1-32.
Mujinga, M., Eloff, M.M. and Kroeze, J.H. (2018). “System Usability Scale Evaluation of Online Banking Services: A South African Study”. South African journal of science, 114(3-4), pp. 1-8.
Nanziri, E.L. (2016). “Financial Inclusion and Welfare in South Africa: Is there a Gender Gap?”. Journal of African Development, 18(2), pp. 109–134.
National Planning Commission. (2012). “National Development Plan 2030: Our Future Make it Work”. Government of South Africa, pp. 1-217.
Ncube, M. (2018). A Statutory Regulatory Analysis of Financial Inclusion for the Poor and Low-income Earners in South Africa. Master of Laws (LLM) dissertation: North West University, pp. 37-43.
Parliament of the Republic of South Africa. (1994). “White Paper on Reconstruction and Development”. Government Gazette, No. 16085, Ref: WPJ/1 994, Cape Town, 23 November 1994, pp. 1-82.
Pike, A., Puchert, J. and Chinyamurindi, W.T. (2018). “Analysing the Future of Broad-Based Black Economic Empowerment Through the Lens of Small and Medium Enterprises”. Acta Commercii, 18(1), pp.1-10.
Rogerson, C.M. (2008). “Tracking SMME Development in South Africa: Issues of Finance, Training and the Regulatory Environment”. Urban Forum, 19, pp. 61-81.
Rootman, C. & Antoni, X. (2015). “Investigating Financial Literacy to Improve Financial Behaviour Among Black Consumers”. Journal of Economic and Financial Sciences, 8(2), pp. 474-494.
Sibanda, S. & Sibanda, T. (2016). “Financial Education in South Africa: Overview of Key Initiatives and Actors”. International Labour Organisation Innovative Finance for Social Justice, pp. 1-36.
Singh, M.A. (2004). “Trends in South African Internet Banking”. Aslib Proceedings, 56(3), pp. 187-196.
Sithole, A. (2018). “Regulatory Strategy of the Financial Sector Conduct Authority: October 2018 to September 2021”. Financial Sector Conduct Authority, pp. 1-75.
Wentzel, J.P., Diatha, K.S. & Yadavalli, V.S.S. (2016). “An Investigation into Factors Impacting Financial Exclusion at the Bottom of the Pyramid in South Africa”. Development Southern Africa, 33(2), pp. 203-214.
Wessels, D. (1999). “South Africa’s Reconstruction and Development Programme: A Better Life for All”. Journal of Social Sciences, 3(4), pp. 235-243.
World Bank. (2013). “South Africa Economic Update: Focus on Financial Inclusion. South Africa Economic Update”. World Bank Economic Update, 4, pp. 1-42.
Published
2020-10-08
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Chitimira, H. (2020). Overview Analysis of Policy and Related Measures for the Promotion of Financial Inclusion for the Poor and Low-Income Earners in South Africa : Array. EuroEconomica, 39(3). Retrieved from https://dj.univ-danubius.ro/index.php/EE/article/view/563
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