Forecast: Financial Services and Insurance Gross Value Added in South Africa

The Financial Services and Insurance sector in South Africa saw a fluctuating performance from 2013 to 2023. The Gross Value Added (GVA) for this sector stood at €55.11 billion in 2023. Between 2013 and 2023, notable variations included a sharp decline in 2014 and a substantial recovery in 2017. The COVID-19 pandemic brought a significant dip in 2020. However, the sector recovered with a solid year-on-year growth of 13.29% in 2021 and continued to grow, albeit at a slower rate, reaching the current level.

Moving forward, we foresee a steady growth trend from 2024 to 2028, with the GVA expected to reach €58.83 billion by the end of the period. The average growth rate is projected to be modest at 1.04% annually, accumulating to a forecasted 5-year growth rate of 5.3%.

Future trends to watch for include the impact of digital transformation, regulatory changes, and economic stabilization post-pandemic, which could influence the sector's growth trajectory. Additionally, the role of fintech innovations and increased emphasis on financial inclusion could drive significant shifts in market dynamics.