AfriForum challenges ABSA on racially discriminatory criteria for business financing
15 June 2022
AfriForum’s legal team directed a letter to Absa bank demanding clarity regarding its use of racial criteria in granting business financing. This comes after AfriForum received complaints from members of the public regarding Absa’s purported qualifying criteria for small and medium enterprise business loans.
For these loans, Absa requires, among other things, that the business applying must be at least 51% black owned. These loans provide access to loan amounts between R50 000 and R1,5 million for new and existing businesses with a minimum of 51% black ownership in all sectors except agriculture.
In light of the above, AfriForum requested written feedback in response to the following questions:
Why does Absa require 51% black ownership to apply for business finance successfully?