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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS800: Measurement of the Access to Financial Services Element of Broad-Based Black Economic Empowerment

Statement 801: The Measurement of the Access to Financial Services Element of Broad-Based Black Economic Empowerment as it relates to members of the Banking Association of South Africa

3. The Definitions, Standards, Target Markets and Key Measurement Principles of Access to Financial Services

3.4 Loan Obligation - Affordable Housing




Loan finance for low income earners to access affordable housing via mortgages, unsecured loans, personal loans secured by pension or provident funds or via wholesale loans to intermediaries who provide end-user loans to low income earners is a national imperative. It is also imperative to stimulate the development of residential units in the State Housing subsidised or "gap" markets by including origination of financing to developers of units that serve the "gap" market.




Affordable Housing origination means the origination of housing finance loans for the target market (currently individuals with a gross monthly income of R15,800 to be adjusted annually). In addition, the financing of residential developments falling within the State housing subsidised or the 'gap' market (currently individuals earning gross monthly income of R10,800 to be adjusted annually), will form part of this pillar.

Annual adjustments are to be based on an agreed formula.


Target Market


The target market is individuals earning no more than gross monthly income of R15,800 (to be adjusted annually) and/or housing developers that are producing housing units for individuals earning no more than gross monthly income of R10,800  (to be adjusted annually). Financing for these developers is included in order to facilitate the development of units to address the shortage of housing stock for the subsidised or 'gap' market individuals in South Africa.




The origination of the following loan products during the measurement period will count under origination in the Access scorecard:

Unsecured personal loans;
Personal loans secured by a pension or provident fund;
Wholesale loans
Development finance for the development 'gap' market units as per the definition above. All other loans to developers shall not count under origination.
All development financing for units for individuals earning not more than a gross monthly income of not more than R15,800 per month shall be counted under Targeted Investment should it comply with the governing Targeted Investment rules and standards.




Organisations will be measured against individual targets based on the loan amounts achieved during the measurement period.




Targets will be agreed based on the origination of loans required to deliver on the Targeted Investment targets as agreed per organisation.