By Mbombo Luhembe

Sustainability data is becoming a strategic capability that supports decision-making, transition planning and capital allocation across African markets.

For banks, the value of sustainability data lies in its ability to shape how institutions understand risk, assess the consequences of financing decisions and direct capital towards long-term economic, environmental and societal value.

Regulatory developments are accelerating demand for credible sustainability information. Carbon-related measures and emerging sustainability disclosure standards are making data quality a priority for boards and executive teams. Yet compliance is only one variable. The greater opportunity is to use sustainability data to strengthen portfolio decisions, customer engagement and transition planning.

Applying global standards in African markets

For a pan-African bank, applying recognised international methodologies requires an appreciation of the operating realities of African markets, where data maturity and availability can differ significantly across sectors and countries. This calls for a pragmatic approach that uses the strongest available information while continuously strengthening the quality and usefulness of sustainability data to support decisions and outcomes.

The goal is progression, not the appearance of perfection. As sustainability data matures and coverage improves, organisations may need to refine previously reported metrics to provide a more representative view of underlying impacts. These refinements are a natural part of strengthening data quality and can provide a more accurate basis for understanding performance and informing decisions over time.

Building data for decisions

The objective is not simply to improve reporting. It is to strengthen how sustainability information supports customer, portfolio and strategic decisions, enabling a better understanding of impacts, more informed assessment of risks and opportunities, and more effective transition planning.

At client level, environmental and social considerations form part of risk assessment. At portfolio level, stronger data coverage can support more representative estimates and a clearer view of transition risks and opportunities. The practical challenge often lies in the structure of a portfolio. High-volume sectors with limited published information can be more difficult to assess than concentrated portfolios with mature disclosure. Agriculture illustrates this reality: collecting information manually across many farms is resource intensive, creating a role for third-party information, automation and emerging technologies that can improve efficiency without placing unnecessary burdens on customers.

Some areas will continue to present measurement challenges. Scope 3 emissions, for example, depend on information across a wider ecosystem and are not always disclosed consistently. As methodologies and data availability continue to evolve, organisations will need to balance ambition with pragmatism, building stronger sustainability data foundations to support decisions and outcomes.

The next frontier

Environmental measurement increasingly benefits from recognised methodologies, but the sustainability narrative cannot end with emissions. An important next frontier is improving how organisations measure social impact, particularly in markets where development outcomes remain a critical part of the sustainability agenda. Over time, organisations will need environmental and social metrics that are clear, comparable and capable of supporting a holistic understanding of sustainability impacts.

Ultimately, sustainability data should help institutions move from reporting to strategic decision-making. It can support better choices about where capital is deployed, how customers are assisted through transition and whether financing is addressing meaningful environmental and societal needs.

The institutions that treat sustainability data as a strategic capability rather than a compliance exercise will be better positioned to manage risk, build stakeholder confidence and direct capital towards Africa’s greatest needs and opportunities. The journey is not about achieving perfect data overnight. It is about continuously strengthening the information available and using it to support better decisions and more meaningful outcomes.

Mbombo Luhembe is Group Head of Sustainability Analytics at Absa Group.

By Mosetsana Mahlafunya, Group Head of Absa Investor Services and Francinah Madise, Sector Head, Public Sector (Client Coverage) at Absa CIB

The appointment of Absa as Master Custodian to South Africa’s Government Employees Pension Fund (GEPF) has understandably attracted attention within institutional investment circles. The GEPF is not only Africa’s largest pension fund but one of the continent’s most significant pools of long-term capital. The mandate itself is noteworthy for its scale, but perhaps more interesting is what it says about the direction of travel for pension funds and custody services across Africa.

Pension funds on the continent, and similarly around the world, were historically largely domestic in character, both in terms of where savings originated and where those savings were ultimately invested, which meant the relationship between those funds and their custodians was built on a relatively clear set of expectations. Assets needed to be safeguarded, transactions settled, records maintained, and income collected, and that arrangement worked because it reflected the realities of the pension industry at that particular stage of its development.

Over time, however, these funds have grown into some of the largest institutional investors in their respective economies, overseeing pools of capital that would have been difficult to imagine a generation ago. According to the OECD, pension assets in Namibia exceeded the size of the country’s economy, while Botswana, Namibia and South Africa all recorded pension assets-to-GDP ratios above both the African and OECD averages.

The picture is far from uniform, with many markets still at much earlier stages of development, but the broader trend is difficult to ignore: as these funds grow, they become more complex.

Diversification is perhaps the defining theme in pension fund investing at present, as funds look beyond traditional allocations to government bonds and listed equities and into infrastructure, private markets, real estate and other alternative assets. In a number of markets, that search for diversification also extends beyond borders, with funds allocating a portion of their capital to regional and international opportunities in pursuit of broader exposure and risk-adjusted returns. There has also been considerable work around digital assets, which remain a very small part of the pension landscape but have nevertheless become a subject of evaluation by regulators and investment managers as the industry considers how emerging asset classes may fit within long-term investment frameworks.

Sustainability has also moved much closer to the centre of investment decision-making, with environmental, social and governance considerations now routinely incorporated into how and where capital is allocated. That conversation intersects with another, namely the role pension capital can play in supporting infrastructure and broader economic development. The opportunity here is significant, but so too is the responsibility. Pension funds ultimately exist to protect the long-term interests of their members, which means development objectives must always be weighed against fiduciary obligations and investment risk.

A pension fund operating across a broader range of investment opportunities and obligations places very different demands on the institutions responsible for supporting those activities. The custody function has always been an important part of that equation, but the role goes well beyond the administration of assets now.

Custodians are responsible for safeguarding investment assets, settling transactions, maintaining investment records, managing cash movements linked to investments and providing the reporting that allows funds and their stakeholders to understand what is taking place across often substantial and complex portfolios. Alongside this is an equally important responsibility around governance, oversight and regulatory compliance, helping ensure that assets are accounted for correctly and that investment activity is conducted within the frameworks established by regulators and fund mandates.

Much of this work takes place behind the scenes, which is perhaps why it receives less attention than investment performance or asset allocation. Yet for pension funds operating at scale in Africa, strong custody infrastructure plays an important role in maintaining confidence in the system. The ability to provide accurate information, support informed decision-making and maintain operational stability across large and complex portfolios has become a critical component of modern pension fund administration.

The assumption has often been that the largest and most complex custody mandates should be entrusted to international institutions. Yet domestic custody capabilities across Africa have developed considerably over time, supported by sustained investment in technology, infrastructure, governance and operational expertise. The GEPF mandate is one example of that shift. Absa’s appointment is not simply a single-bank development, but a useful marker of how African financial institutions are increasingly being expected to support custody, reporting, operational resilience and governance requirements at a scale once more commonly associated with global custodians.

By Dr Reaan Immelman, Head of Financial Literacy, Education at Absa

Is consumer financial education actually working in South Africa?

As someone deeply passionate about financial empowerment this is one of the burning questions I find myself constantly pondering.

Every year, the financial services sector commits a substantial investment to Consumer Financial Education (CFE) initiatives. Corporates regularly supplement these efforts with internal financial wellness programs, webinars, and advisory workshops. On paper, the country has never had access to more financial literacy content.

Yet, when we look at the actual data, it gives us pause for thought and reflection. We have a negative national savings rate – in other words the average household spends more than it earns. The household debt to income ratio sits at around 60% – meaning for every R1 earned, 60c is spent on debt servicing and the estimation is that less than 10% of South Africans can afford to retire.

We also know that there is a clear link between financial stress and your overall wellbeing.

If we bring all of these factors together, in pursuit of financial peace of mind, it’s no wonder some people consider putting their money under their mattresses.

This may be a bit tongue-in-cheek, but we really do need to interrogate where we are going wrong with managing our finances.

It is critical to acknowledge that even with the best financial ambitions, we face some very real structural realities around unemployment and a cost-of-living crisis which is biting across the world. I don’t discount that and more financial education isn’t going to change what is happening in the global economy.

Rather, our question is around how we are developing good financial habits and behaviours. More specifically, why we are struggling to get the basics right.

There was some research conducted by the industry which pointed out that South Africa’s financial literacy score was around 52 out of 100. Down from 55 on the previous reading. How can it be going down if we are spending so much time and energy driving these financial literacy campaigns?

In my view, it has a lot to do with the barrier of silence around money and or the pressure of  #LivingTheBestLife,  as the youth so often say.

Part of the issue is that conversations about money in South Africa remain uncomfortably taboo. Discussing debt, budget shortfalls, or financial anxiety is hard – especially in a culture increasingly shaped by digital peer comparison.

On social media, feeds are dominated by curated highlights of people showing their new cars, career milestones, luxury vacations, and high-end lifestyles. This digital pressure valve distorts reality, making individual financial struggles feel like personal failures rather than shared systemic challenges.

This becomes an important social challenge and imperative. Financial  confidence is built through two important elements: financial literacy, helping people make smarter everyday money decisions, from budgeting for life’s biggest moments to managing unexpected expenses, and secondly financial security – helping people recognise scams, protect their money and keep their personal information safe.

This is why we are adopting a new approach when it comes to financial education initiatives. We want to meet our audiences where they are consuming the content that matters.

The question is how?

If traditional lectures, brochures, and corporate workshops aren’t driving behavioural change, how do we make financial literacy resonate? This is where my finance and marketing brains go into overdrive.

Media consumption habits clearly show that people are more receptive to short-form, mobile-ready video content. This tells us a lot about the type of content we should be developing. Instead of formal instruction, we need to leverage narrative entertainment, like Micro-Dramas.

As one of the world’s fastest-growing digital entertainment formats, micro-dramas deliver compelling, serialized stories in short vertical episodes designed explicitly for cellphones. This form of story-telling is often characterised with high-impact content, built with the intention of making the viewer come back for more.

In our case, we have developed a series called “For Better Or For Whatever” which we are launching in September 2026 and we are intrigued to see how it is received. Distributed across platforms like TikTok, YouTube shorts, and Instagram reels, which align with modern media consumption habits: the series is easy to watch during a commute, simple to share, and inherently bingeable.

This might not replace a daily fix of your favourite long format series, but here is why I think “For Better Or For Whatever” might actually get some traction and mass appeal.

The storyline is centred around two South African families brought together by a major wedding where virtually nothing goes according to plan. Packed with local humour, cultural nuance and heart, the series does not preach interest rates or balance sheets. Instead, it unpacks how money quietly shapes family dynamics, personal relationships, and life’s major milestones. A relatable day in the life of an average family.

By watching characters navigate financial pressure points on screen, audiences are prompted to reflect on their own spending and saving choices through entertainment rather than instruction.

Importantly we have recognised that information alone will not change behaviours, we have to deliver content to where people are feeling confident around engaging with content. Finances are such a personal topic and we believe this will be a great way to incentivise people to start having these discussions in a safe space.

It is no secret that economic conditions globally are tough right now. Household budgets are stretched, and financial anxiety is at an all-time high. To create genuine financial resilience, we must demystify money conversations and strip away the shame associated with financial stress. By breaking down barriers and adopting fresh, engaging communication channels, we can equip you with the tools and confidence to make informed, realistic decisions about how to save, invest, and spend.

Absa’s latest Homeowners Sentiment Index (HSI) shows that more women are building property portfolios in South Africa, with the strongest growth coming from younger buyers.

Among investors who own three or more properties, women accounted for 48,1% in the second quarter of 2026, up from 46,7% in the same period two years ago. Women also now make up the majority of property investors aged between 25 and 34 at 51,8%.

These figures point to a broader change in female representation in the property market, with women gaining ground beyond homeownership and into property investment. The fact that younger women now make up the majority of investors in their age group suggests this could become an even more significant feature of the market over time.

“What we have seen is that consumers and investors are well aware of the ongoing economic and political shifts around them, and they are cognisant that these changes will influence their buying power and the financial commitments of homeownership. Property ownership and investment are still desired goals, but the decision to enter the market is being viewed more carefully and strategically,”
said Nondumiso Ncapai, Managing Executive: Home Loans Absa Group.

Overall, consumer confidence in South Africa’s property market decreased slightly by one percentage point to 87% in the second quarter of 2026. The softer reading comes as uncertainty around interest rates, the economy and the political environment weighs more heavily on decisions to buy, invest in and renovate property.

Confidence declined across all of the HSI subindices over the quarter, with buying sentiment falling by 7 percentage points, renovating by 6 points, investing by 5 points, renting by 4 points and selling by 3 points. The decline in buying sentiment was the most significant, marking the largest quarterly drop since Q4 2022. Respondents pointed to the high cost of living, concerns about the economy, elevated interest rates and high property prices as the main factors holding back confidence.

“Affordability is the single biggest constraint on property ownership. Respondents repeatedly link the difficulty of buying and keeping property to high costs relative to income. Many cannot afford deposits, bonds and rising ongoing costs such as rates, levies, utilities and maintenance. This is leading some to delay or abandon buying, downscale or sell, even though they still see property as desirable,”
said Ncapai.

The HSI also found that the broader economic environment is weighing on property decisions, with consumers concerned that economic instability could keep interest rates high or push them higher. Respondents linked bond repayments, possible rate increases and strict lending criteria to greater financial stress and a higher perceived risk of entering or staying in the market. Crime and area safety were also cited as major considerations. Respondents associated high crime levels with lower property values, difficulty selling and higher security costs, with many favouring secure estates or better-policed areas when considering where to buy.

“Many South Africans still see property as a safe long-term investment with the potential to appreciate in value and build wealth. But that value is now being judged more carefully against factors such as location, demand, political confidence, service delivery and expectations for the future,”
said Ncapai.

The Absa HSI is a leading indicator of the overall state of consumer confidence in South Africa’s property market. Launched in 2015, the Index’s overall consumer confidence insight is supported by sub-indices that measure consumer confidence around buying, selling, and investing in property.

To view the full report, visit our Homeowner Sentiment Index site.

Absa’s latest Homeowners Sentiment Index (HSI) shows that more luxury properties are being bought in South Africa, with the upper end of the residential market seeing a noticeable increase in activity over the past year. Homes valued above R4,5 million accounted for 5,2% of transactions in the second quarter of 2026, up from 4,0% a year ago, and now make up more than a quarter of the market by value.

Much of this growth is coming from the Western Cape, where luxury properties accounted for 9,9% of transactions during the quarter. This means that almost one in ten properties being bought in the province now falls within the luxury segment.

High-net-worth customers and entrepreneurs are also increasingly using legal entities when purchasing property, often as part of broader wealth planning considerations. Legal entities accounted for 27% of property market activity in the latest quarter, highlighting another feature of how wealthier buyers are approaching property ownership.

“What we have seen is that consumers and investors are well aware of the ongoing economic and political shifts around them, and they are cognisant that these changes will influence their buying power and the financial commitments of homeownership. Property ownership and investment are still desired goals, but the decision to enter the market is being viewed more carefully and strategically,”
said Tshepo Mashashane, Head: Business Strategy and Strategic Communication.

Overall, consumer confidence in South Africa’s property market decreased slightly by one percentage point to 87% in the second quarter of 2026. The softer reading comes as uncertainty around interest rates, the economy and the political environment weighs more heavily on decisions to buy, invest in and renovate property.

Confidence declined across all of the HSI subindices over the quarter, with buying sentiment falling by 7 percentage points, renovating by 6 points, investing by 5 points, renting by 4 points and selling by 3 points. The decline in buying sentiment was the most significant, marking the largest quarterly drop since Q4 2022. Respondents pointed to the high cost of living, concerns about the economy, elevated interest rates and high property prices as the main factors holding back confidence.

“Affordability is the single biggest constraint on property ownership. Respondents repeatedly link the difficulty of buying and keeping property to high costs relative to income. Many cannot afford deposits, bonds and rising ongoing costs such as rates, levies, utilities and maintenance. This is leading some to delay or abandon buying, downscale or sell, even though they still see property as desirable,”
said Mashashane.

The HSI also found that the broader economic environment is weighing on property decisions, with consumers concerned that economic instability could keep interest rates high or push them higher. Respondents linked bond repayments, possible rate increases and strict lending criteria to greater financial stress and a higher perceived risk of entering or staying in the market. Crime and area safety were also cited as major considerations. Respondents associated high crime levels with lower property values, difficulty selling and higher security costs, with many favouring secure estates or better-policed areas when considering where to buy.

“Many South Africans still see property as a safe long-term investment with the potential to appreciate in value and build wealth. But that value is now being judged more carefully against factors such as location, demand, political confidence, service delivery and expectations for the future,”
said Mashashane.

The Absa HSI is a leading indicator of the overall state of consumer confidence in South Africa’s property market. Launched in 2015, the Index’s overall consumer confidence insight is supported by sub-indices that measure consumer confidence around buying, selling, and investing in property.

To view the full report, visit our Homeowner Sentiment Index site.

Absa has been appointed Master Custodian to the Government Employees Pension Fund (GEPF), Africa’s largest pension fund with more than A R3.5 trillion pension worth assets under management.

JOHANNESBURG, XX June 2026 – Absa has been appointed Master Custodian to the Government Employees Pension Fund (GEPF) in one of the most significant custody mandates in South Africa’s institutional investment market.

The appointment expands a relationship spanning more than two decades between Absa and the GEPF and affirms the bank’s position as a trusted institutional servicing partner capable of supporting mandates of this scale and complexity.

As Master Custodian, Absa will be responsible for the safekeeping and administration of the Fund’s investment assets, settlement of investment transactions, cash management linked to investments, reporting, and broader custody coordination across the investment ecosystem, while supporting the Fund’s governance and oversight requirements.

“We recognise that the stewardship of Africa’s largest pension fund carries enormous responsibility. At the centre of this appointment are the livelihoods and long-term financial security of millions of South African public servants, pensioners, and their families, and we do not take lightly the trust placed in institutions that support the Fund,”
said Francinah Madise,Sector Head, Public Sector (Client Coverage) at Absa CIB.

Entrusting a responsibility of this scale to Absa speaks to the strength of the bank’s institutional servicing capability, technology platforms, infrastructure, and governance standards, as well as its long-term commitment to the African custody market.

The appointment is primarily an institutional and operational change and does not directly affect the day-to-day experience of GEPF members or pension beneficiaries.

Over time, the strengthened custody framework is expected to support improved governance, transparency, and oversight of the Fund’s assets, contributing to the protection of members’ long-term interests.

“Much of the work performed by a custodian happens behind the scenes, but it plays an important role in maintaining the confidence and operational integrity that enables the Fund and its stakeholders to make informed decisions,” said Mosetsana Mahlafunya, Group Head of Absa Investor Services. “Our relationship with the GEPF has developed over many years, and we have taken the time to understand its requirements to deliver the level of support and consistency the Fund requires over the long term.”

The GEPF serves more than 1.2 million active members and over 565 000 pensioners and beneficiaries, with assets worth more than R3.5 trillion. Absa has maintained a transactional banking relationship with the GEPF since 2001, providing core banking services including cheque deposit processing and electronic banking solutions. These existing services will continue alongside the new Master Custodian appointment.