South Africa’s savings and investment industry is facing an increasingly complex and fragmented regulatory landscape as it works to advance the country’s transformation objectives. This environment includes the Amended Financial Sector Code, which took effect on December 1, 2017. The code provides a consistent yardstick for the savings and investment industry to measure progress through a balanced Broad-Based Black Economic Empowerment (B-BBEE) scorecard. The regulatory framework aims to guide efforts toward greater inclusivity within the sector, providing a structured approach to foster economic participation.
Transformation Progress Measured
Significant strides have been made in ownership targets, with Black South Africans holding 33.1% ownership in life offices and 45.8% in asset managers by the end of 2025. These figures notably surpass the target of 25% set for the industry. This progress occurs within a complex regulatory environment, where seven authorities have introduced 10 distinct frameworks over the past five years to advance transformation. These numerous frameworks highlight the concerted effort across various governmental bodies to drive change within the financial sector. For measurement purposes, life offices are assessed against targets across eight scorecard elements, while asset managers are evaluated on six. These differing metrics reflect the distinct operational structures and business models of these two key segments of the savings and investment industry, ensuring tailored and relevant evaluations of their transformation efforts.
The Association for Savings and Investment South Africa (ASISA) Board initiated a project in 2021 to monitor collective transformation progress annually, benchmarked against the Amended Financial Sector Code (FSC). This mandate from the ASISA Board shows the industry's commitment to self-assessment and accountability in its transformation journey. The ASISA Industry Transformation Report for 2026 represents the fifth iteration of this initiative. This report measures the transformation progress of ASISA members over the eight years since the Amended FSC became effective, offering a full look at the sustained efforts and outcomes. Data for the report was compiled from members employing 85,000 individuals, collectively representing 98% of assets under management (AUM) for life offices and 83% of AUM for asset managers. This extensive data collection ensures that the report provides a strong and representative overview of the industry's advancements in transformation.
Navigating Regulatory Complexity
The Association for Savings and Investment South Africa (ASISA) and its member organizations have expressed significant concerns regarding the unintended consequences stemming from four specific government interventions. These interventions include the Transformation Fund, managed by the Department of Trade, Industry and Competition (the dtic), and the Draft General Public Procurement Regulations proposed by National Treasury. Additionally, ASISA and its members are focused on potential impacts from the Employment Equity Reform and the Skills Development Reform Programme. ASISA and its members are most concerned about these four government interventions, which, while aimed at broader national objectives, are seen as posing challenges within the savings and investment industry. The industry body has indicated that these measures could introduce unforeseen complexities or hinder ongoing transformation efforts if not carefully implemented. The focus remains on understanding and mitigating any adverse effects these reforms might have on the sector's operational landscape and its ability to meet transformation targets, ensuring that policy implementation supports rather than impedes progress.
Industry Perspective and Future Needs
The Association for Savings and Investment South Africa (ASISA) proposes retaining 51% Black ownership as the majority-ownership baseline for preferential procurement, while recognising 100% ownership as a premium achievement. This nuanced approach aims to balance broad-based empowerment with aspirational targets for full Black ownership. The journey towards these ownership levels has shown considerable growth. Data from 2018 showed Black unencumbered shareholding in life offices at 13.7%, with Black ownership of asset managers at 22.2%. The significant increase to 33.1% and 45.8% respectively by the end of 2025 demonstrates a strong trajectory of empowerment within the sector.
Participating ASISA members invested approximately R953 million in Enterprise and Supplier Development in 2025. This substantial investment notes the industry's commitment to fostering the growth of Black-owned businesses within its supply chain. In the same year, these members directed about R27.8 billion in procurement to 51% Black-owned suppliers. Additionally, R16.1 billion was procured from 30% Black Women-owned suppliers, and more than R10.4 billion went to exempt micro enterprises, further demonstrating a targeted approach to inclusive economic participation. These procurement figures show the direct economic impact of the industry's transformation efforts on a diverse range of Black-owned enterprises. Life offices and asset managers collectively spent R442 million on Socio-Economic Development and Consumer Financial Education in 2025. These initiatives are key for empowering communities and enhancing financial literacy among consumers, contributing to broader societal development. ASISA members also invest an annual average of R2.85 billion in bursaries, learnerships, internships, graduate programmes, and professional qualifications. This significant investment in human capital development aims to build a pipeline of skilled Black professionals for the financial sector and the wider economy. On average, ASISA members invest more than R814 million each year in Enterprise and Supplier Development (ESD), reflecting a consistent and sustained commitment to nurturing and supporting Black-owned businesses. These ongoing investments across various pillars of transformation illustrate the industry's full approach to achieving its objectives.
