Online Reporter
Black South Africans, who remain vastly poorer than whites in one of the world’s most unequal nations, have extended their ownership of the country’s asset management and insurance industry.
That’s according to a new study by the Association for Savings and Investment South Africa, which shows Black people almost doubled their ownership of life insurance companies to 36 percent from 19 percent in 2018. They now also hold 43 percent of asset managers, up from 25 percent in 2018.
These levels of ownership are the highest ever recorded in the country, where wealth was concentrated in the hands of the White minority by decades-long rule which only ended in 1994.
The income of White families remains almost five times higher on average than Black families, Statistics South Africa said in January. Laws to redress historical inequity have helped create a Black business elite, but the majority remain poor and the unemployment rate at around 33 percent is one of the highest in the world.
The savings and investment industry has been striving to improve since rule changes in 2017 introduced a specific scorecard for financial institutions to improve inclusivity and access to their services in South Africa.
Voting rights held by Black South Africans in life offices increased to 46 percent, while that of asset managers jumped to 49 percent, surpassing the target of 25 percent. Additionally, the number of Black executives in asset managers climbed to 50 percent from 39 percent in 2018, and that of insurers rose to 47 percent from 29 percent. — Bloomberg
