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.

By Faisal Mkhize, Managing Executive for Business Development at Absa Business Banking

Much has been said about the 46th SADC Summit and what it may mean for the 16 countries trying, with varying degrees of success, to prise integration out of the communiqués and declarations that have arguably carried the idea further than the region in practice sometimes has. Somewhere in the rush to make sense of the bigger questions around Southern Africa’s place in a more fractious world, however, a smaller idea was buried beneath the headlines. Smaller only in the amount of attention it received because, taken seriously, it asks us to reconsider who this project is actually being built for and where its economic weight will ultimately have to come from.

A few days before the heads of state gathered for the formal business of it all, President Cyril Ramaphosa said during a public lecture at the University of KwaZulu-Natal that “Southern Africa’s industrial revolution will ultimately not be driven by the large conglomerates listed on stock exchanges, but by the tens of thousands of small and medium-sized businesses that bring innovation, agility and competitiveness to the economy.”

It is an interesting idea and a Herculean task in roughly equal measure, though also the direction Southern Africa should be travelling in, because the businesses being placed at the heart of that future still operate in a regional economy that becomes markedly less hospitable the moment they try to grow beyond home.

SADC has not, of course, spent the past three decades in limbo, and it would be churlish to pretend otherwise when so much of the cooperation machinery has been assembled over that time, even if a few of its more ambitious parts have acquired the slightly permanent air of work still in progress (the stubborn customs union comes to mind here). What has been harder to shake is the habit of imagining growth from the top down, with progress judged largely by what states agree and by the movement of firms already big enough to take advantage of those arrangements. Small businesses have featured in the policy architecture, certainly, but rarely as the economic engine around which the wider project should be designed, even though the weighting of the economy has been telling us for some time that they ought to be.

SMEs account for more than 90% of business establishments across SADC and more than 60% of employment, which makes their relatively faint presence in cross-border commerce all the more striking. Their contribution to exports is estimated at around 12%, a figure that looks particularly anaemic beside the European Union, where SMEs account for roughly 34% of exports directly and as much as 58% once their contribution through larger exporters is traced through the supply chain. Even ASEAN, whose economies offer a more useful comparison in several respects, draws close to 30% of its exports from SMEs.

The good news is that there is now a more deliberate attempt to confront exactly this problem.

SADC’s SME Development and Competitiveness Strategy, taken forward in Madagascar last year and now guiding the period to 2029, is probably the clearest effort yet to gather the scattered pieces of SME development into one regional view. The strategy focuses on improving the policy environment in which SMEs operate, strengthening entrepreneurship and skills, expanding access to technology and support infrastructure, opening more routes to market, and improving access to finance. If implemented well, it would be a decisive step in creating a more enabling environment for SME growth across the region, though in truth it would still only take us part of the way.

The real swing would come in making that thinking far more deliberate at the level of SMEs, by seeing SADC’s economies less as neighbouring markets competing for the same opportunities and more as parts of a wider productive system in which different strengths can reinforce one another.

Too often, progress is seen through a nationalistic lens, with each government trying to deepen its own industrial base and attract investment on its own terms. There is an understandable logic to that, considering the unique pressure each country faces to create jobs and sustain economic growth, but taken too far it can leave sixteen markets trying to reproduce the same capabilities in parallel, and often in competition, when some of what they are trying to build already exists elsewhere in the region and could be put to work more deliberately across borders.

The ambition would no longer be to help a business in one country sell more into another; it would be to build regional value chains in which small businesses from different markets participate according to what they do well, combining those strengths into products and services that can compete more convincingly beyond the region.

In many ways, that is the kind of economic behaviour AfCFTA will eventually depend on anyway, except that Southern Africa has the advantage of being able to practise the habit at a more immediate scale first. Ask many SMEs what AfCFTA means for them today and they are likely to tell you it still feels too large and too abstract to make much difference to their businesses. Getting this right within SADC could begin to change that by giving them something more tangible: the experience of seeing that growth across borders is actually possible.

And the case for getting on with it has a much sharper edge because sovereignty these days is being negotiated as much through economic dependence as through politics.

In the same lecture, President Ramaphosa argued that “the welfare of our people and the sovereignty and security of our nations require that we work with greater diligence and purpose to build an integrated Southern African market.” Southern Africa will always trade with the world, and should, but there is a difference between being open to the world and being structurally exposed to it. The more of the region’s productive life that can be carried through businesses trading with one another, the less every external shock has to arrive here with quite the same force.

A denser network of small businesses trading across SADC would not make the region self-sufficient, nor is that the goal. What it would do is anchor more of Southern Africa’s economic agency in the ordinary workings of its own businesses, with value created in one market feeding activity in another and giving the region a thicker commercial base from which to deal with the rest of the world.

Nairobi, Kenya / Johannesburg, South Africa

Absa Group Limited has announced its intention to launch a tender offer to acquire up to approximately 896 million ordinary shares in Absa Bank Kenya PLC from eligible shareholders.

Absa Group currently owns approximately 68.5% of Absa Bank Kenya. If the tender offer is fully accepted, the Group’s shareholding would increase to a maximum of 85%, representing the acquisition of up to 16.5% of the bank’s issued share capital.

The proposed transaction reflects Absa Group’s long-term confidence in Absa Bank Kenya, Kenya’s banking sector, and the broader East African market. It supports the Group’s pan-African growth strategy and its commitment to strengthening its presence in high-growth markets across the continent.

“Kenya is a strategically important market for Absa Group and remains central to our East Africa growth ambitions,” said Charles Russon, Group Executive: Africa Regions. “This proposed transaction reflects our confidence in Absa Bank Kenya’s leadership, strategy and long-term growth prospects, as well as our continued commitment to supporting Kenya’s economic development.”

Absa Group intends to maintain Absa Bank Kenya’s listing on the Nairobi Securities Exchange following completion of the tender offer. The Group does not intend, as a result of the offer, to change the bank’s business strategy, executive management team, employee base, or day-to-day operations.

The proposed transaction relates solely to Absa Bank Kenya’s shareholding structure and will have no impact on customers, products, services, branches, accounts or day-to-day banking operations. Absa Bank Kenya will continue to serve customers as normal.

Providing shareholders with a choice

The tender offer will provide eligible shareholders with the opportunity to sell some or all of their shares should they wish to do so. Shareholders who choose not to participate will not be required to take any action.
The offer price will be KES 34,50 per ordinary share, subject to the final approved terms of the tender offer.

Shareholders are encouraged to read the tender offer document in full once it becomes available and to seek advice from their stockbroker, custodian, investment bank, or other professional adviser if they are uncertain about any aspect of the offer.

Regulatory status

The proposed tender offer remains subject to regulatory approvals from the Capital Markets Authority (CMA). The offer will not commence until the necessary approvals have been obtained.

Offer process

Once the tender offer opens, eligible shareholders who wish to participate will be able to submit acceptances through the channels detailed in the tender offer document. These are expected to include electronic application channels, mobile or USSD options where applicable, and physical tender forms through authorised acceptance agents.

The offer is expected to remain open for 30 business days, subject to the final approved timetable. Any changes will be communicated through the appropriate regulatory channels.

Important notice

This media release is provided for information purposes only and does not constitute an offer, invitation, recommendation or investment advice. The tender offer will be made solely on the terms and conditions contained in the official tender offer document and acceptance form once issued.

Approval of the tender offer document by the CMA, if granted, should not be interpreted as an endorsement of the offer or a recommendation to Absa Bank Kenya shareholders.

About Absa Group

Absa Group Limited (‘Absa Group’) is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services groups.

Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance.

Absa Group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia and has insurance operations in Kenya and South Africa. Absa also has representative offices in Namibia, Nigeria and the United States, a registered financial services entity in the People’s Republic of China, as well as securities entities in the United Kingdom and the United States, along with technology support colleagues in the Czech Republic.

For further information about Absa Group Limited, visit www.absa.africa
Media queries: Daniel Munslow, Managing Executive: Group Communications
M +27 71 347 6915
E daniel.munslow@absa.africa