Big banking bonanza

Absa expects R78hbn, Stanlib aims for about R50bn.

- Suren Naidoo

South Africa's largely consumer-driven economy is likely to get a financial stimulus from two-pot withdrawals, as the new pension system takes effect from Sunday. However, it all depends on how much is withdrawn.

Big banks, asset managers and economists are expecting withdrawals from the "savings pot" of pensions totalling between R50 billion and R100 billion in the first year, which many agree could provide another tonic to economic growth.

This is in addition to expected decreases in interest rates, optimism around the economy growing faster on the back of the establishment of the government of national unity (GNU), and Eskom finally getting a handle on load shedding.

Depending on how efficiently the withdrawal process is handled, it is not just the South African Revenue Service (Sars) that's going to cash in from two-pot withdrawals.