Purpose of sector classification
The Institutional Sector Classification Guide for South Africa divides institutions into institutional
sectors as suggested by the 1993 System of National Accounts (1993 SNA) for the analysis of
economic transactions. An alternative classification system, the Standard Industrial Classification of all Economic Activities or SIC, will be discussed in Schedule A.
The Research Department of the South African Reserve Bank collects financial data, in respect of the major institutional sectors, on a regular basis from financial institutions, such as banks, insurers and pension funds, as well as from other organisations such as public corporations and local authorities. This information is used, inter alia, for analysing the flow of funds between sectors, establishing which sectors require which types of financing and which sectors provide in these particular needs. Thus, in the case of an issuer of stock, for example a public corporation such as ESKOM, it is important to know from which sectors of the economy subscriptions are received for the new stock issue, and also to keep track of transactions in which such existing securities are traded between sectors.
Due to the numerous individual organisations and persons that are economically active, it is necessary to make meaningful groupings or sector classifications of the parties involved. It is therefore the purpose of this institutional sector classification to serve as a guide in this respect for the organisations rendering financial survey returns to the Research Department of the Reserve Bank.
The list of public corporations, in the sector for public enterprises, namely sector 12 from page 28, also serves as the reference list of "public corporations" for the purposes of the regulations
promulgated in terms of the Mutual Banks Act (No. 124 of 1993) and the Banks Act (No. 94 of 1990), respectively.
Sector Guide 1999.pdf