• The financing of several renewable energy projects under the fourth round of South Africa’s renewable energy independent power producers programme (REIPPP), lending to municipalities, and lending to state owned enterprises responsible for economic infrastructure (See our Reporting to Society for details.)
• Advised on, structured and part-financed a major black economic empowerment deal for the South African National Taxi Council (Santaco). The R1.7 billion deal enabled Santaco to acquire a 25% stake in SA Taxi, a subsidiary of Transaction Capital that specialises in sales, financing and insurance of minibus taxis. The deal will benefit thousands of taxi operations and drivers, enabling Santaco to expand into higher margin upstream sectors, including vehicle sales, finance, and insurance
• Financed Seriti Resources’ acquisition of Anglo American’s Eskom-supplying coal assets. Seriti is a 91% black owned and controlled South African mining company. The acquisition makes Seriti Eskom’s largest black-controlled coal supplier
• Facilitated the merger of Peregrine Securities and Legae Securities (South Africa’s oldest stockbroker), resulting in the formation of Legae Peresec and creating the largest stockbroker on the JSE
• Facilitated Afropulse Group’s subscription of 25% of the share capital in Imperial Logistics Advance, making Imperial Logistics Advance the only 100% black-women owned company in the logistics industry
• Provided funding for AdaptIT for a pipeline of acquisitions
• Structured an acquisition finance facility for the African Pioneering Group (APG), enabled it to acquire the remaining shares in Pioneer Fishing

For example, we’ve signed a cooperation agreement with the Limpopo Provincial Treasury in South Africa to provide access to funding for SMEs who have secured government contracts but lack the finance to execute such projects. We have committed R300 million ($21.4 million) over three years to this initiative. Funding includes a short-term/once off revolving facility, for suppliers undertaking work valued below R500 000; and short, medium-term and asset finance for contracts above R500 000.

SBSA’s Tshwaranang Trust, established in 2016 as a means to provide collateral against which to extend loans to small businesses, experienced a rising default rate during 2018. Concerns were also raised by the relevant regulator regarding the use of a trust mechanism as a means of disbursing enterprise development funds. We have undertaken an extensive review of the model, drawing on the lessons learned to develop better ways of enabling access to finance for SMEs that lack collateral or surety.

Standard Bank’s agribusiness transformation programme develops black commercial farmers and black-owned agribusinesses to contribute to the transformation and economic viability of the agricultural sector in the Free State, support job creation and improve food security. Objectives include developing black sustainable commercial farmers, developing sustainable secondary agribusinesses, cultivating mutually beneficial relationships amongst stakeholders, strengthening agricultural training and development networks in Africa, improving academic programme and graduate employability. We aim to develop a model replicable across South Africa and potentially in other African countries.

We offer our affordable housing mortgage customers online or classroom-based training to help manage their home ownership obligations. Training is provided by external service providers and funded by the bank. In 2018, 726 customers participated in the programme.

Despite South Africa’s tough economic conditions, 88% of our affordable housing customers are keeping up with their repayments. We’re working with 7% of our customers who are showing signs of struggling to service their home loan to get back on track, providing them with alternative options that include a pause on their loan, an extension on the loan terms or a reduced repayment. In 2018, 2 054 home loans were restructured to keep families in their homes.