BANKSETA ANNUAL REPORT 2023

PERFORMANCE INFORMATION

Success stories

BANKSETA’s IEDP keeps practitioners abreast of developments Technology is not the only way in which the world has changed. Developments in the finance industry have brought new understanding of how markets operate. And working in the industry, even for many decades, does not always give practitioners sufficient knowledge to stay abreast of changes. This realisation is partly what drove Evans Nhlanhla Maphenduka to enrol for the Independent Executive Development Programme (IEDP). Having completed the programme early in 2023, Evans is now fired up to make an even bigger contribution to his work in the microfinance and financial co-operative development sectors. A seasoned professional in the financial services sector, Evans is an independent contractor with the Development Microfinance Association (DMA), who strives to bring awareness in government and other stakeholders of the importance of these sectors in fostering financial inclusion in South Africa. This is especially important in the rural and township areas, many of whose residents have been excluded from mainstream financial services. Asked where he heard about BANKSETA, Evans says: “BANKSETA is a household name in the financial services sector. The work it has done as an enabler of skills development and transformation in banking, microfinance and financial co-operatives is bellowing throughout South Africa. BANKSETA also reinforces the professional conduct of those that partner with it. At one time I enrolled some of my staff in the BANKSETA executive programmes. One came back with such knowledge and confidence about the microfinance sector that I decided I would also enrol. So when the opportunity came, I jumped at it and today I have the same confidence and understanding of the development sector, including the financial cooperative sector.” Although Evans has a master’s in development finance, the whole industry has evolved. Back in the 1980s, he says, the concept of microcredit was limited to tiny loans being offered to informal businesses as a way of survival.

Evans Nhlanhla Maphenduka IEDP beneficiary

This evolved in the 1990s to microfinance, which included promoting access to a variety of other financial services as a way of building sustainable wealth for the most vulnerable segments of societies. In the 2000s, financial inclusion became more prominent. The concept called on governments to create enabling environments so that the financial sector could include those that lack access to financial services. Today the development finance concept is about “last mile” financing models that enable development microfinance institutions, banks, cooperatives, digital finance entities, and mobile network operators to reach deep rural populations with affordable financial and transfer services. Evans notes: “The language has evolved, and new terms with new understanding have emerged. There is a need to stay current and keep pace with new developments in the industry. One of the best ways to do so is through programmes such as the BANKSETA’s IEDP, currently in partnership with the Regenesys Business School.” Speaking of his vision for the future, Evans says South Africa currently has no dedicated policy and legislation for informal and microenterprises. “Everything is lumped together under policies and legislation that favour small and medium businesses to the detriment of informal and microenterprises. My goal is to advocate for informal and microenterprises to have their own policy framework and legislation. That will bring South Africa in line with other developing countries.”

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PART B: PERFORMANCE INFORMATION | BANKSETA ANNUAL REPORT 2022/23