MIX Microfinance World: Mapping the Financial Sector in South Africa

This map of financial inclusion in South Africa provides data on more than 40,000 points of service, covering a wide range of providers. The data goes beyond commercial banks and MFIs to cover pawnshops, cash loan providers, retailers, and all types of credit providers in the market. The map integrates data on population, and surveys on poverty and financial access.The paper highlights the importance and role of mapping in visualizing the infrastructure of the financial system, which correlates with the penetration of credit and deposit products. Findings include:

• South Africa has a deep and diverse financial sector, but its inequality remains among the highest in the world;
• Some, but not all organizations in South Africa have a developmental focus;
• Bank branches are just a fraction of the total 43,000 points of service in the country;
• MFIs and salary-based microfinance lenders play a large role in the sector;
• Cash loan operations, and pawn shops have a larger reach than developmental providers, such as MFIs;
• Most populous regions have the most providers, but regions with the highest poverty rates have the fewest branches.