For the first time blacks have the opportuinty to be the majority owners of an SA financial instution
For the first time blacks have the opportunity to be the majority owners of an SA financial institutionSome time this year the latest chapter in the often turbulent history of African Bank will be written when the Reserve Bank exits as its controlling shareholder.
The benevolence of other role players was instrumental in assisting the founders of the bank to convert it to reality. For a country that had systematically excluded black people from access to skills — especially the type of skills necessary to run an institution like a bank — the question of who would manage it was only resolved after Sam Motsuenyane travelled to London in 1972 and successfully lobbied Barclays to assist in training staff and investing in the bank itself.
Since then, no doubt with the scars of the past and the benefit of hindsight underpinning the approach to managing this unique asset, the African Bank story has been a measure of discipline and prudence — on the operational side at least. In its 2020 annual report the bank indicated that it had coped well with the strong headwinds of the Covid-19 pandemic.
the door for speculative investors with an eye on overhauling what little remained of the bank’s identity as a black institution. It also could have resulted in the less-than-favourable price for the Bank’s stake. The history of empowerment deals in the banking sector since 2004 mirrors the established trends in BEE deals across the system. Individuals and consortiums who acquired stakes required financial assistance. Given the modest ownership targets set under the BEE codes — where 25% was the common target — none of these deals ever resulted in a majority stake being directly owned by black shareholders.
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