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Absa Group Delivered 17% Headline Earnings Growth Driven by Lower Impairments and Pre-Provision Profit Growth

Absa Group Delivered 17% Headline Earnings Growth Driven by Lower Impairments and Pre-Provision Profit Growth

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Salient points

  • Revenue rose 5% to R56.5 billion
  • Pre-provision profit increased 4% to R26.4 billion
  • Impairments decreased 14% to R7.2 billion
  • Credit-loss-ratio improved to 100 basis points (bps) from 123 bps
  • Headline earnings increased 17% to R11.9 billion
  • Operating costs grew 6% to R30.0 billion
  • Cost-to-income ratio increased to 53.2% from 52.7%
  • Dividend per share increased 15% to 785 cents
  • Return on equity increased to 14.8% from 14.0%
  • Common Equity Tier 1 (CET 1) ratio of 12.5%, slightly lower than prior year (12.7%)

 

Absa Group delivered strong earnings growth for the first half of 2025, reflecting successful execution of its strategic priorities. Headline earnings increased 17% as credit impairments declined and pre-provision profit grew.

Revenue increased, underpinned by strong non-interest income growth and stable net interest income, reflecting solid divisional revenue contributions. From a geographic perspective, double-digit earnings growth was delivered by the Group’s South African operations, mainly due to lower impairments, while Africa regions’ performance was mainly driven by strong pre-provision profit growth as underpinned by strong customer growth.

“Our interim earnings performance demonstrates good progress on strategic priorities during this period, including operational reorganisation and divisional alignment, and enhanced client focus. Headline earnings increased 17% and our return on equity continues to improve, showing the benefit of our diversified footprint with operations in 16 countries,” said Kenny Fihla, who joined Absa Group as Chief Executive Officer on 17 June 2025.

A 14% decrease in impairments played a significant role in delivering earnings growth and included a robust collections strategy, credit model enhancements, and changes to new-business lending criteria, particularly in vehicle asset finance and unsecured lending. The credit-loss-ratio reduced in line with guidance and is at the top end of Absa’s through-the-cycle target range at 100 basis points.

“Among the key contributors to our strong performance are a notable improvement in our credit-loss-ratio, strong growth in non-interest income particularly trading, and cost management supported by our productivity programme,” said Deon Raju, Absa Group Financial Director. To date, Absa has achieved R2.4 billion of the R5 billion savings it had committed to achieving by 2027 under a productivity programme launched in 2024.

“While we continue to operate in a highly competitive environment, we remain focused on identifying opportunities to grow our balance sheet, our customer base and maintain our competitive positioning across our markets,” added Raju.

Business unit performance

Absa Group business units’ performance in the first half of 2025 reflects the benefits of disciplined execution, with most business units reporting strong earnings growth.

Business unit headline earnings performance

Business unit June 2025 Headline earnings Change year-on-year
Personal and Private Banking R3.2 billion Increased 23%
Business Banking R1.7 billion Decreased 12%
Corporate & Investment Banking R6.4 billion Increased 10%
Absa Regional Operations Retail and Business Banking (ARO RBB) R1.1 billion Increased 35%

 

The newly formed Personal and Private Banking (PPB) business unit delivered strong earnings growth, primarily driven by a significant reduction in credit impairments, despite muted revenue growth due to modest industry loan expansion and a more conservative risk appetite in lending. PPB is continuing its investment in enhancing the bank’s digital capabilities to deliver a seamless, human-centered banking experience for its customers. The areas of focus include enhancing mobile and digital platforms, embedding artificial intelligence (AI) and data analytics and strengthening cybersecurity.

Business Banking (BB) earnings fell short of expectations and were impacted by subdued revenue growth and higher credit-related impairments.

Corporate and Investment Banking (CIB) reported solid earnings growth and benefitted from lower credit-related impairments and robust trading revenue, although net interest income growth remains constrained. CIB remains an anchor for the Group, contributing more than half of the Group’s earnings.

Absa Regional Operations Retail and Business Banking (ARO RBB) showed strong growth in revenue and pre-provision profit with a significant improvement in headline earnings. These results were supported by strong customer acquisition and fee income growth, which helped offset higher credit-related impairments.

Head Office, Treasury, and other operations reported a substantially lower earnings loss, reflecting the impact of asset and liability management optimisation and the discontinuation of hyperinflationary accounting in Ghana due to lower inflation in that market.

Non-financial performance

Absa Group’s customer base increased 2% to 12.8 million in the first half of the year and Group-wide digitally active customers increased 8% to 5 million customers.  Continued efforts in evolving product offering and digital channels were evident from, for example, the launch of our Kiganjani App in Tanzania, making it easier for customers to manage their finances from anywhere.

Absa increased its investment in IT-related spend, with costs increasing 5% to R8.2 billion, mainly reflecting investment into new digital capabilities resulting in higher cybersecurity, as well as software license and maintenance costs. Ongoing investments in new technologies, the use of AI and digitisation are expected to yield benefits through operational streamlining and automation which will further enhance delivery on client-centric solutions.

Absa is continuing its journey to advance its sustainable finance agenda and is refining its ESG strategy to focus on high-impact sectors while advocating for regulatory support to unlock further investment in industrial decarbonisation and infrastructure.

 

Outlook

Given the weak start to the year and the negative impact of the US trade tariffs, we expect the South African economy to grow just 0.9% in 2025. Our baseline forecast for our Africa region countries is that GDP will rise slightly to 4.8% in 2025. Although heightened global uncertainties have increased downside risks for all our markets, lower inflation and policy rates, ongoing infrastructure investment, favourable weather conditions, multilateral support and a strong focus on reform across the region continue to support the longer-term outlook.

For the full year, Absa’s guidance for 2025 is largely unchanged and expects mid-single digit revenue growth. Return on equity of around 15% is expected. We expect a weaker Rand to underpin earnings slightly in 2025, and Africa regions earnings growth should be noticeably stronger than South Africa.

 

For Group CEO video remarks and a video clip featuring our highlights during the first half of 2025, please visit News and Insights – Absa Group | Welcome to Absa Group Limited.

To view our SENS and investor materials, visit Financial results – Absa Group | Welcome to Absa Group Limited

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Celebrating Every Woman’s Untold Story

Celebrating Every Woman’s Untold Story

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Behind every woman is a story that can inspire the world. At Absa, we see that story.

This Women’s Month, Absa reaffirms its commitment to storytelling that moves beyond campaigns and becomes a lived expression of purpose. Under the banner #WeSeeYourStory, and with a special focus on women through #WeSeeHer, Absa is surfacing the real, remarkable stories of women across business, technology, sport, entrepreneurship, and the arts. These are not just stories of success, they are stories of grit, creativity, ambition, and transformation.

Women’s Month 2025 is not a standalone moment, but part of Absa’s wider brand narrative: one that recognises the power of untold stories and the importance of creating platforms where those stories can be seen, heard, and celebrated. Through a curated calendar of events, programmes and platforms, Absa is demonstrating that investing in women is not a PR statement, it’s a strategic imperative grounded in data, delivery and long-term commitment.

Across the business, Absa continues to drive women-centred innovation, particularly in technology. Internally, the Group’s “Women in Tech” platform, led by Group ITO, will host a showcase on 7 August spotlighting female technologists who are transforming financial systems from within. Absa also made headlines this year with the launch of an AI-powered brand campaign featuring business journalist Fifi Peters, the first South African broadcaster to be digitally cloned using artificial intelligence. This wasn’t just a feat of technology, it was a bold step in ensuring that female voices continue to shape the future of storytelling.

In entrepreneurship, Absa’s investment into women-owned businesses continues to grow, with over R3.2 billion in procurement spend allocated to women-led enterprises across South Africa in the last financial year. Through programmes like She Thrives, women entrepreneurs receive the funding, mentorship, and ecosystem support needed to scale. In partnership with Visa, the She’s Next competition, running from July through September, offers female founders the opportunity to secure funding and exposure. This journey will culminate in the SheNext event on 24 September, where finalists and mentors come together to celebrate breakthrough businesses. Financial inclusion remains a cornerstone of Absa’s approach, with dedicated masterclasses in financial literacy being hosted this Women’s Month to ensure more women are equipped to own their financial journeys.

Absa’s internal culture reflects this external ambition. Today, 52% of the Group’s workforce identifies as female, with targeted initiatives in place to strengthen female representation in leadership. Women-centred employee programmes span mental health, workplace wellness, and gender-based violence (GBV) awareness. Activations throughout August, including the Women in Risk Forum (5 August), the Women Ignite Townhall (18–22 August), and ARO-wide activations (25–29 August), serve not only to honour women internally, but to ensure that policy and practice align with purpose.

Beyond the workplace, Absa’s commitment to equity extends into sport and culture. This August, Absa will once again be the driving force behind women-focused races in four major cities, from the Totalsports Women’s Races in Durban, Cape Town and Johannesburg, to the grand finale Run Your City Tshwane on 24 August. These events are more than races, they are national expressions of empowerment, with Absa colleagues running alongside clients and communities in celebration of women’s strength. Long-term sponsorships like the Sunshine Ladies Tour and the Absa Cape Epic She Untamed continue to create space for women to lead and compete in high-performance arenas, shattering outdated assumptions about what women in sport can achieve.

As a brand rooted in storytelling, Absa continues to invest in authentic platforms that allow women to share their perspectives through the arts. Two major exhibitions will headline this year’s Absa L’Atelier Pan-African Art Series, both led by powerful female voices. In Cape Town, Adelheid Frackiewicz explores personal transformation and the evolving role of women through her exhibition at AVA Gallery (7 August – 25 September). In Kimberley, Bulumko Mbete, winner of the 2023 Gerard Sekoto Award, presents “Like the sky, I’ve been too quiet” at the William Humphreys Gallery (14 August – 13 September), a multimedia reflection on migration, memory, and identity.

This Women’s Month, Absa is also turning the spotlight outward, inviting the public to participate in a national movement of recognition. Through a social storytelling campaign under #WeSeeHer, South Africans are encouraged to tag women in their lives who embody creativity, ambition, potential or resilience, and share their stories. Each week, selected nominations will be featured on Power FM, where both the storyteller and the woman being recognised will be given the opportunity to share their untold story with the country.

The month culminates in one of the most anticipated events on Absa’s calendar: Phenomenal Women, a soulful gathering taking place on 9 August at the NIROX Sculpture Park in partnership with the NIROX Foundation. Set in the heart of the Cradle of Humankind, the event will honour women’s voices through music, poetry, performance and art. The all-female lineup includes Zolani Mahola + The Feminine Force, Poet Nomashenge Dlamini, Shotgun Tori, and WGRUV Dance Company, alongside a curated showcase of women-owned businesses and a full-day art and culinary experience.

“Through Phenomenal Women and every activation across our Women’s Month calendar, we are reaffirming our belief that the stories of women, especially those that have gone unheard, deserve to be honoured, invested in, and amplified,” says Candice Thurston, Managing Executive: Brand and Marketing, Absa Group. “Because when women thrive, communities rise. And when we see her, we all see what’s possible.”

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Building resilience for the future through purposeful impact

Building resilience for the future through purposeful impact

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By Punki Modise, Chief Sustainability Officer, Absa Group

Sustainable finance is often judged by its immediate impact. But looking at it through a short-term lens misses the point. For banks like Absa, sustainable finance is not a side project. It is a way to manage risk, back innovation and stay competitive over the long term.

Africa’s development goals – outlined in frameworks such as the Sustainable Development Goals, the African Union’s Agenda 2063 and South Africa’s National Development Plan – require capital far beyond the reach of public funding. Financial institutions must step up, not only with capital, but with a clear strategy.

Absa mobilised R121bn between 2021 and 2025, focused largely on renewable energy. That is only a fraction of what is needed to tackle South Africa and Africa’s infrastructure and sustainability challenges. But the aim is not only short-term results. Investing in high-risk, low-margin projects builds the internal capabilities – skills, systems and products – that will shape Absa’s role in the future economy. These investments are part of the shift towards a more resilient, inclusive model of development.

From risk management to value creation

Recent global evidence supports this long view. Morgan Stanley’s 2025 “Sustainable Signals” survey shows 88% of executives now see sustainability as a long-term value driver, with over half placing value creation above risk management. More companies in North America and Europe treat sustainability as core business, not compliance, citing higher profitability, revenue growth and lower cost of capital. Crucially, 83% say they can measure returns on these investments as confidently as traditional ones.

This confirms what many already know: sustainable finance is central to creating value, building resilience and staying competitive. The risks are real. The same survey found 57% of companies faced climate-related events last year, causing rising costs, workforce disruption and lost revenue from supply chain failures. Looking ahead, 60% expect physical climate risks to affect their business within five years. The greater risk is doing nothing. Sustainable finance helps banks manage exposure, hedge volatility and seize emerging opportunities.

This approach builds capability. It enables banks to design and scale systems and products for tomorrow’s markets. It also sets them apart. While short-term impact may seem limited, managing and growing higher-risk investments will define future-ready banks. As Morgan Stanley shows, returns are increasingly measurable and competitive.

Sustainable finance is not corporate altruism. It is a practical way to build stronger institutions that deliver financial results while supporting long-term economic and social goals. By shifting from short-term outputs to long-term value, banks like Absa can shape Africa’s future and secure lasting value for shareholders and society.

We recognise the challenge of delivering returns within short financial cycles. Yet building lasting development and market opportunity requires patience and foresight. Supporting micro-enterprises, informal economies and essential infrastructure involves higher initial risks and thinner margins, but these investments are vital for inclusive growth and unlocking future market potential.

Being candid about these realities – and transparent about our impact – is critical. That’s why we invest in robust sustainability data platforms like Novisto, ensuring traceability and full integration of ESG insights into decision making. This transparency builds trust and strengthens our licence to operate and lead sustainably over the long term.

From financing to sustainable development impact

A clear example of how we are future-proofing Absa and expanding the impact of sustainable finance is the landmark Tanga UWASA Green Bond in Tanzania. Launched in 2024 in partnership with the National Bank of Commerce Limited, this first-of-its-kind green bond raised capital to upgrade water and sanitation infrastructure in Tanga City. The bond’s strong demand – twice oversubscribed – and its availability to retail investors, uniquely broadened financial inclusion by opening new pathways for ordinary citizens to participate in sustainable investment.

More than 6,000 households now enjoy improved access to clean water, while the rollout of prepaid water meters is expected to boost revenue collection by at least 10%. These are not incidental outcomes; they reflect deliberate design choices to create measurable community and economic value. Such investments build bank capabilities and demonstrate our commitment to embedding impact into the core of our operations, reinforcing our resilience in a changing world.

Infrastructure improvements are just one dimension of sustainable finance. The true value lies in the tangible improvements to people’s lives – the access we create and the economic inclusion we unlock. These outcomes are deeply personal and transformative, underpinning the strength and sustainability of the communities and markets we serve. By aligning our activities with these human-centred impact goals, we position Absa to anticipate and respond to evolving societal needs, creating long-term resilience.

Aligning investment with public policy for greater resilience

South Africa’s evolving green finance taxonomy presents an important opportunity to drive local investment while aligning with global best practices. But for this to be effective, implementation guidance must reflect the unique social and economic context we operate in.

At Absa, we are committed to embedding development priorities into every lending and investment decision. Through rigorous economic impact assessments and social return calculations, we ensure our capital deployment supports public policy outcomes and drives meaningful engagement with government, clients and investors alike. This alignment fortifies our position as a resilient financial institution deeply connected to Africa’s development trajectory.

Scaling impact with strategic purpose and partnerships

Scaling sustainable finance across Africa requires intentional focus on three pillars:

  • Enhancing data infrastructure to deliver consistent, credible impact measurement and reporting
  • Expanding blended finance instruments that mitigate risk and broaden project reach
  • Deepening collaborations with governments, development finance institutions, and civil society to ensure investments meet real, prioritised needs

At Absa, sustainable finance shapes every decision – from pioneering innovative financial products to driving customer-focused solutions and embedding data-driven accountability.

It is not just about protecting our licence to operate; it is central to strengthening our licence to lead. Mobilising capital for high-risk, low-margin projects builds the capabilities needed to support Africa’s development goals and the future economy.

Our success will be measured not only by financial returns but by the progress we enable for clients, communities and the continent. This approach ensures Absa remains resilient, relevant and a catalyst for inclusive growth for decades to come.

 

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Fuel your startup’s growth with the MEST Africa Challenge 2025 – Powered by Absa

Fuel your startup’s growth with the MEST Africa Challenge 2025 – Powered by Absa

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Absa partners with the Meltwater Entrepreneurial School of Technology to champion innovation through the MEST Africa Challenge 2025

Absa is proud to partner with the Meltwater Entrepreneurial School of Technology (MEST Africa) for the MEST Africa Challenge 2025, to champion African tech entrepreneurs striving to deliver technology driven solutions for an evolving continent. The MEST Africa Challenge (MAC) is a renowned pan-African programme that nurtures innovation and invests in emerging tech entrepreneurs.

The programme, exclusively sponsored by Absa, will spotlight fintech innovation, reflecting Absa’s commitment to driving digital transformation and inclusive finance across the continent.

"Africa’s future will be shaped by bold ideas, local ingenuity, and scalable innovation. At Absa, we recognise the critical role entrepreneurs play in driving inclusive economic growth. This partnership with MEST reflects our commitment to backing those visionaries and shaping the future of financial services. It complements our digital transformation strategy and reflects our purpose of empowering Africa's tomorrow, together, one story at a time,” said Omar Baig, Managing Executive for Absa Regional Operations (ARO) Retail and Business Banking.

Running from August to November, the challenge opens for applications on 4 August and closes on 26 September. From the pool of submissions, 20 semi-finalists will be shortlisted and then narrowed down to 10 finalists. These finalists will pitch their solutions at the grand finale in November, where a single winning start-up will secure a $50,000 seed equity investment to scale their business.

Established in 2008, MEST Africa has trained over 2,000 entrepreneurs and invested in 94 startups across Africa. The MEST Africa Challenge, now in its seventh year, is a flagship pitch competition that spotlights and accelerates high-potential startups continent-wide. This edition, in collaboration with Absa, aims to support start-ups aligned with key innovation areas identified by the bank.

“The MEST Africa Challenge is where Africa’s boldest ideas find the opportunity to scale,” said Ashwin Ravichandran, Portfolio Advisor and MAC Lead at MEST Africa. “Our partnership with Absa gives these visionary founders the lift they need – connecting them to the capital, expertise, and networks that turn promising startups into sector-defining businesses and drive inclusive growth across the continent.”

The challenge will provide startups with tailored mentorship, access to vital networks and opportunities to pilot their solutions in relevant African markets. This collaboration is not just about funding – it’s about fostering a supportive ecosystem designed to help startups grow and scale sustainably.

“At Absa, we continue to work towards our goal of being a digitally powered business – one that leverages technology to create simpler, faster, and more inclusive financial experiences. This requires more than technology; it calls for strong, strategic partnerships,” says Muhammad Ali Bhikhan, ARO Managing Executive and Chief Information Officer. “Our collaboration with MEST will not only connect us with innovative startups but also enable us to build a strong talent and entrepreneurial pipeline that drives digital innovation and long-term impact across the continent. Together, we can accelerate the adoption of transformative solutions that will better serve our customers throughout Africa,” he concludes.

Eligibility and Application Details
The 2025 MEST Africa Challenge will be eligible to technology and fintech startups in eight of Absa Regional Operations markets. These include Botswana, Uganda, Mauritius, Seychelles, Kenya, Mozambique, Zambia and Ghana. Startups in these countries are encouraged to apply and take advantage of this opportunity to scale their solutions and connect with a broader innovation ecosystem.

Sector focus

The sector focus is on Fintech and other value chains. Solutions may include:

  • Smart credit and alternative-lending
  • Fraud and trust tech
  • Personalised money OS
  • Offline-friendly rails
  • Next-gen payments and wallets
  • Investment gateways
  • Agri-tech engines
  • Financial literacy re-imagined
  • Omnichannel CX and super-apps
  • Trade and cross-border boosters
  • Product-landing platforms
  • Value-add service layers
  • Integration orchestrators
  • Micro and on-demand insurtech

Apply here

Eligibility criteria

  • Early to growth-stage startups (less than 3 years in operation)
  • Monthly recurring revenue (MRR) of at least US $5,000 with at least 6 months of recurring revenue
  • Cumulative funding raised must be US $1 million or less
  • Must be operating in at least one of the following key markets:
    -Botswana
    -Uganda
    -Mauritius
    -Seychelles
    -Kenya
    -Mozambique
    -Zambia
    -Ghana
  • Minimum of two co-founders or founding team members
  • Must be able to pitch in English
  • Registered as a Delaware C-corp or in a neutral jurisdiction

Apply here

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Entrepreneurs and changemakers to gather at 2025 Festival of Entrepreneurship

Entrepreneurs and changemakers to gather at 2025 Festival of Entrepreneurship

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Over 300 entrepreneurs, investors and trailblazers to converge in Johannesburg for the Festival of Entrepreneurship, to accelerate inclusive entrepreneurship and enterprise growth across the continent

Today, over 300 leading entrepreneurs, investors and ecosystem enablers gathered at the Marriott Hotel, Melrose Arch, for the Festival of Entrepreneurship (FOE) 2025, a high-impact, full-day event dedicated to accelerating entrepreneurship in South Africa and beyond.

Themed around the African Development Bank’s High 5 priorities – energy, agriculture, industrialisation, integration and quality of life – the festival focuses on actionable strategies to unlock inclusive growth and scalable innovation through entrepreneurship. With a curated agenda of keynotes, panels and masterclasses, FOE 2025 is set to unpack the pillars that drive successful entrepreneurial ecosystems, including access to finance, capacity building and strategic collaboration.

Attendees will hear from industry leaders, funders, township economy champions, business support specialists and seasoned entrepreneurs who have successfully navigated the challenges and successes they encountered along the business journey. Discussions will span investor readiness, growth funding, public-private partnerships and the future of youth- and women-led businesses in Africa.

Absa Group, as headline sponsor, brings its deep-rooted commitment to empowering entrepreneurs to the event. With a strong presence in the small and medium enterprises (SME) ecosystem, Absa continues to foster inclusive economic participation and long-term business sustainability.

“At Absa, we believe that entrepreneurship is not only a catalyst for economic growth but also a vital engine for job creation and innovation. Through our collaboration with FOE 2025, we are reinforcing our mission to empower entrepreneurs with the tools, funding and support they need to thrive,” says Ronnie Mbatsane, Group Managing Executive: SME Segments at Absa.

FOE 2025 is supported by partners including the Industrial Development Corporation (IDC), Small Enterprise Development Finance Agency (SEDFA), Telkom and National Empowerment Fund (NEF), with IDF Capital leading the programme curation and hosting the event.

Attendees will participate in masterclasses on investor readiness, financial planning, branding and tendering strategy, which will provide practical knowledge and one-on-one engagement with subject matter experts.

Follow the event:  @FestivalOfEntrepreneurship | Hashtag: #FOE2025

For media queries, please contact:

  • prmedia@absa.africa
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Absa and Foton Create New Financing Solution to Turbo-Charge the South African Taxi Industry

Absa and Foton Create New Financing Solution to Turbo-Charge the South African Taxi Industry

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The minibus taxi industry is a cornerstone of South Africa’s economy, which is why Absa and leading commercial vehicle manufacturer Foton South Africa are partnering to empower the operators of this vital sector and small-business owners alike.

A year after launching Foton Finance – a product by Absa, the two organisations are expanding their partnership this week through the launch of Foton Taxi Finance, a finance solution that makes minibus taxi ownership more affordable, faster, and sustainable for taxi operators and Small and Medium Enterprises (SMEs).

For the first time, taxi operators can secure ownership of Foton’s petrol or diesel Asambe minibus taxis in just four years, making it easier for those wanting to upgrade or grow a modern, reliable fleet. The offer also makes room for several optional extras such as the installation of app-based taxi management system RUTCO in the vehicle, to enhance operational efficiencies.

“We’re offering competitive monthly instalments, starting at below R12 000, to turbo-charge a taxi operator, driver, or small-business owner’s transport capabilities. Research has shown that more SMEs require reliable, affordable vehicles to expand their businesses, and naturally, this applies directly to the minibus taxi industry, where the quality and safety of your vehicle is integral,” says Charl Potgieter, Managing Executive for Absa Vehicle and Asset Finance.

“Recent data has suggested the South African minibus-taxi industry has created economic opportunities for taxi entrepreneurs, and has an annual turnover of R38-billion to R50-billion. However, this doesn’t take into account the knock-on economic benefits of reliable transportation for workers and entrepreneurs alike,” he continued.

Foton Taxi Finance also offers a free Financial Education course for every taxi financed, and when completed, will unlock a series of other benefits, including a free first service at an associated Foton Dealership.

“Financial education is an example of Absa’s commitment to being a force for good in society, because we understand that a financially confident business owner is a successful business owner. That’s why we hope we can share some of our knowledge to the taxi industry and any transport-focused small business, as partners, through this new solution,” said Fulufhelo Mandane, Executive: Strategic Partnerships at Absa Vehicle and Asset Finance.

This week’s launch was attended by key stakeholders from the taxi industry, SME sector, and Foton representatives, all to experience the Asambe Taxi and benefits that Foton Taxi Finance provides.

“We understand that South Africans need robust, high-performance vehicles that can withstand local conditions whether it’s moving people across urban centres or transporting goods over challenging terrain. Our goal is to offer a wide range of sustainable reliable mobility solutions. This partnership with Absa enables us to better support a variety of industries across the country, helping them grow their livelihoods and contribute meaningfully to the local economy,” said Marius Smal, Chief Executive Officer of Foton South Africa.

As a leading global manufacturer of commercial vehicles, Foton’s diverse range of trucks, vans, and passenger vehicles are designed to meet the evolving needs of businesses and individuals alike. Powered by cutting-edge engineering and a passion for excellence, Foton South Africa has reiterated its commitment to providing the next generation of vehicles that combine advanced technology, superior performance, and unparalleled reliability.

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Proud partner of the TIPS Forum 2025

Proud partner of the TIPS Forum 2025

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Exploring how together we can advance regional integration and drive inclusive industrial development within the AfCFTA.

Absa is proud to partner with Trade and Industrial Policy Strategies (TIPS) for the annual TIPS Forum, taking place from 30 to 31 July 2025 at the IDC Auditorium in Sandton, Johannesburg, with a wider audience joining virtually. 

Themed “The African Continental Free Trade Area (AfCFTA), Regional Integration and Industrial Development”, this year’s forum will explore how the AfCFTA can be a catalyst for industrial growth, cross-border trade and deeper economic integration across Southern Africa. 

As part of the forum’s knowledge contributions, Absa’s Corporate and Investment Banking (CIB) team will share a research paper proposing a new conceptual framework centred on the design and operationalisation of regional industrial hubs. 

Said Stephen Seaka, Managing Executive: Public Sector and Growth Capital Solutions,  at Absa CIB: “The real power of the AfCFTA lies in implementation. We believe that through meaningful partnerships and platforms like the TIPS Forum, public and private sectors can co-create industrial pathways that accelerate Africa’s inclusive growth. This is how we shift from ideas to infrastructure, from intention to impact, because transformation depends on collaboration, and our role is to enable both.” 

Absa takes a holistic, ecosystem-based view of economic development in Africa, recognising the continent not as a collection of isolated markets or sectors, but as an interconnected landscape of opportunity. With a strong Pan-African presence, the bank facilitates cross-border trade and investment in alignment with the ambitions of the AfCFTA. Through a profound understanding of regional interdependencies and the deployment of innovative trade and development finance solutions, Absa is uniquely positioned to drive integration, unlock shared economic value and support inclusive growth across the continent. 

David Mparutsa, Pan-Africa Head: Enterprise and Supplier Development at Absa CIB, will present a new conceptual framework for regional industrial integration in Africa at the forum.  

The TIPS Annual Forum is widely regarded as a critical platform for evidence-based, policy-relevant dialogue. This year, over 150 in-person delegates and up to 300 virtual participants are expected to attend, representing a cross-section of voices from government, business, academia and civil society. Absa’s investment in this forum extends beyond funding. It’s about catalysing real, regional progress.  

“Whether through value chain development, trade finance innovation or institutional partnerships, we’re focused on helping Africa move from ambition to delivery. The continent’s growth story is being written in real time, and we’re proud to contribute to the pages that follow,” said Mparutsa. 

“Inclusive development doesn’t happen by chance; it’s shaped through dialogue, co-creation and decisive action. TIPS continues to convene policy conversation that promotes practical, regional outcomes. As a proudly Pan-African bank, we support a platform dedicated to unlocking long-term opportunities across the continent,” said Dr Steven Zwane, Acting Managing Executive: Stakeholder Engagement at Absa Group.  

“Absa’s funding of this year’s forum aligns with our broader strategic positioning on the continent, including our contribution to global policy platforms such as the G20 and B20, ensuring that Africa’s voice is heard on trade, investment and inclusive growth,” Zwane added. 

Looking to the future: participation of the private sector in initiatives such as the annual TIPS Forum remains essential in shaping an integrated Africa capable of competing globally, connecting meaningfully and growing collectively. Through such collaboration, dialogues and engagements that are followed by intentional actions, Africa’s story of industrialisation and trade is not only being imagined, but being realised.  

“We thank Absa for their support and contribution towards this forum, and for thereby highlighting their commitment to Africa’s regional integration and industrial transformation,” said Dr Saul Levin, Executive Director at TIPS. 

As a strategic partner at this year’s TIPS Forum, Absa reaffirms its commitment to Africa’s development priorities, not only through financial solutions, but also through insights, collaboration and institution-building. This association aligns with the Group’s broader strategy to drive industrial development, enable cross-border trade and support regional integration across the continent.  

For media queries, please contact:

prmedia@absa.co.za 

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Establishing a Green Vehicle Finance Ecosystem: Absa to offer new, sustainable solutions in BYD agreement

Establishing a Green Vehicle Finance Ecosystem: Absa to offer new, sustainable solutions in BYD agreement

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Absa and BYD, the world’s leading electric car manufacturer, are partnering to drive sustainable vehicle finance solutions as demand for new energy vehicles (NEVs) surges in South Africa.

This agreement aims to pave the way for wider adoption of green solutions in the local passenger vehicles market, as well as achieve a shared goal between Absa and BYD: the establishment of a green vehicle finance ecosystem.

Representatives from both institutions and media partners gathered at the BYD offices in Woodmead, Sandton, on 25 July for the signing ceremony cementing this new partnership, surrounded by a selection of BYD’s cutting-edge electric vehicles.

“As a leader in vehicle finance, we recognise the growing demand for energy-efficient mobility solutions. We are proud to support BYD in bringing world-class NEV technology to our market and we welcome the opportunity to grow our sustainable-linked financing activities,” said Charl Potgieter, Managing Executive for Absa Vehicle and Asset Finance.

The partnership, he explained, was driven by Absa’s goal of green energy transformation, in alignment with the bank’s 2050 carbon neutrality goals. According to the cooperation agreement signed at the ceremony, Absa will provide full-service banking and financial solutions with full market competitiveness to BYD Dealers and Customers through its range of offerings, including but not limited to, OEM and Dealer wholesale finance facilities, end-user finance to customers, insurance, and value-added products and services.

This positions Absa as a primary partner to the 15 motor dealerships that currently stock BYD vehicles across the country, providing consumer and wholesale financing. For the bank, it also represents a significant step towards developing a comprehensive range of related green finance products and services that will help spur the growth of energy efficient vehicles across its loan book  – a green finance ecosystem that will allow a wider variety of South Africans to make more sustainable mobility choices.

“In financing these vehicles, we are highlighting our commitment to innovation and our belief in a sustainable future. BYD’s reputation as the only full electric vehicle manufacturer operating in South Africa, coupled with its global stature, aligns with our vision to support more efficient and eco-friendly automotive solutions,” said Fulufhelo Mandane, Executive for Business Development – and strategic partnerships – at Absa.

In the last three years the bank’s new energy vehicle finance portfolio, made up of hybrid and electric vehicles, has experienced considerable expansion, albeit off a low base. This indicates a positive turn in consumer sentiment towards eco-friendly mobility, the growth of which has previously been held back by concerns around affordability and supportive infrastructure.

According to naamsa | the Automotive Business Council, South Africa doubled its new energy vehicle (NEV) sales in 2024, year on year. In the first quarter of 2025, NEV sales continued to grow, increasing 14% compared to Q1 2024.

Founded in 1995 as a developer of pioneering battery technology and having sold more than 4.27 million units of new energy passenger vehicles globally in 2024, BYD brings an offering to South Africa at price points significantly lower than what has previously been available. The BYD models boasts vehicle-to-load functionality which returns electricity to motorists, allowing them to power household devices with their vehicles.

“This partnership is built on three core values. Firstly, affordability – we’re introducing EV and PHEV models at a much more affordable price tag combined with Absa’s tailored financing packages,” said Steve Chang, General Manager at BYD South Africa.

“Secondly, accessibility. We’re making solutions available to more customers through Absa’s wide-reaching branch network and digital platforms and BYD’s expanding national footprint. Finally, sustainability with purpose – every car financed under this partnership is a step toward reducing carbon emissions, protecting our planet, and stimulating green economic activity.”

For Absa, a funder of Africa’s largest standalone battery facility, this signing ceremony is another example of its commitment to support South Africa’s just transition to a low carbon economy.

“At Absa, our bank has continued progressing towards our 2050 net-zero carbon emissions goal. We have achieved our R100 billion sustainable financing target, a year ahead of plan, and we continue to grow our sustainable-linked financing,” said Potgieter.

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SA Property Investment Confidence Remains Near Record Highs, Absa HSI Finds

SA Property Investment Confidence Remains Near Record Highs, Absa HSI Finds

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Investment sentiment in South Africa’s residential property market remained elevated in the second quarter of 2025, with Absa’s latest Homeowners Sentiment Index (HSI) recording an 84% positive response.

This marks the strongest consecutive three-quarter performance since the Index was launched in 2015, underscoring sustained consumer confidence in property as a long-term investment asset.

“Property investment is largely driven by the common goal of owning a stable, high-return asset, along with the growing awareness of the benefits of earning additional or passive income,” said Nondumiso Ncapai, Absa Home Loans Managing Executive. “With many South Africans optimistic about economic recovery, there is increasing recognition of property’s potential to generate value now and build wealth for future generations.”

The positive outlook for property as an investment is underpinned by several key perceptions among South African consumers. Over half (53%) believe that property consistently gains value over time, while 52% see it as offering good returns. Nearly half (48%) view it as a reliable source of passive income, and 47% cite strong demand for rental properties as a motivating factor. Looking ahead, 42% anticipate continued growth in demand, reinforcing confidence in property’s long-term investment potential.

At the same time, investors remain cautious about several risks. Chief among these is concern over the broader economic climate, with 51% citing poor economic performance as a key deterrent. Other concerns include the weak rand (33%), high property prices (36%), and affordability challenges among tenants – particularly in the context of job insecurity and unemployment – with 29% worried that tenants may be unable to pay rent and 27% highlighting broader concerns about labour market stability.

The Absa HSI is a leading indicator of the overall state of consumer confidence in South Africa’s property market. In the second quarter of 2025, overall homeowner sentiment rose by one percentage point to 86%, suggesting that persistent economic concerns have not significantly dampened consumer confidence. The uplift was supported by easing inflation and expectations of stable or gradually declining interest rates.

Ongoing semigration shifts were also noted in the HSI report. The Western Cape and Eastern Cape continue to see a positive net migration over the most recent quarter, similar to levels observed in the previous quarter. Gauteng remains the biggest net loser of property owners, with a 24% increase in net outward migration.

Looking ahead, a further interest rate cut anticipated in July, according to the Absa house view, should help sustain the stability in consumer sentiment this market has enjoyed in the last year, said Ncapai.

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