Finance Minister Pravin Gordhan briefs journalists in Cape Town on Thursday ahead of presenting the medium-term budget policy statement. Picture: TREVOR SAMSON
Finance Minister Pravin Gordhan briefs journalists in Cape Town on Thursday ahead of presenting the medium-term budget policy statement. Picture: TREVOR SAMSON

THE financial services sector globally needs to move away from the overemphasis on rapid profit maximisation that lay behind the 2008 financial crisis, Finance Minister Pravin Gordhan said on Monday.

Mr Gordhan was speaking in Cape Town at the inaugural Africa summit of the Institute of International Finance (IIF).

The IIF is a global association of financial institutions, including banks, insurance companies and asset managers, and conducts research on economic trends globally and in individual countries.

It conducts regular regional meetings, with Monday’s summit, which included senior banking executives and central bankers, the first in Africa.

Mr Gordhan said the banking sector in Africa was far too concentrated, which led to higher costs. He urged the introduction of more competition.

He said political judgments should not be made about South Africa ahead of the African National Congress’s elective national congress in Mangaung in December, and insisted that democracy was "very stable" in the country.

Regarding the deaths of more than 40 mineworkers in strike-related violence at Marikana, Mr Gordhan gave the assurance that the government, business and labour were committed to finding solutions.