Absa scores an A empowerment rating

Absa Group has been awarded an A rating for its empowerment credentials. The rating was awarded by the Financial Sector Charter Council (FSCC), a body that is charged with monitoring the implementation of the Financial Sector Charter (FSC). The FSC has been in effect since January 2004 and its targets are effective for a period of 10 years.

The A rating is the highest category awarded to financial institutions that achieve more than 56 overall scorecard points for their empowerment status for the year under review. Absa scored more than 85 points for the year ending December 2006.

Dr Steve Booysen, Absa Group Chief Executive says the rating shows that Absa is serious about empowerment.

“The rating clearly demonstrates our commitment to the transformation process. It is also evidence of our compliance with the provisions of the Financial Sector Charter (FSC) and our desire to contribute meaningfully to the South African economy.”

He adds that accelerating the transformation process within the financial services industry benefits the group’s core business, as it opens opportunities in new market segments.

“It is crucial for Absa to be involved in transforming the economy as this is where Absa would also draw the new customers.”

Peter Mageza, Absa FSC Sub-committee chairperson, says the Codes of Good Practice on BEE provide another window of opportunity for Absa to further accelerate its empowerment endeavours and add more impetus to the transformation drive.

“Currently, the financial sector charter is being aligned with the Codes of Good Practice. We aim and hope to find common ground which will enable us to bring our empowerment status within the context of the Codes of Good Practice.”

Mageza says Absa has braced itself to maintain the A rating by exceeding the set scorecard points in the next two years.

“For us it not just about complying with the FSC and related empowerment legislation. We are tackling the transformation challenge head-on and will continue to introduce a raft of programmes and put mechanisms in place for the purpose of accelerating BEE. This is both a moral and business imperative.”