African Bank interim CEO Zweli Manyathi brings decades of experience in the South African banking sector to the role.
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The board of African Bank has reaffirmed its support for interim group CEO, Zweli Manyathi, saying the leadership change will not disrupt the lender’s long-term strategy and that the institution remains committed to strong governance and regulatory compliance.
This comes after weekend reports that the sudden departure of Kennedy Bungane as CEO, the third under board chair Thabo Dloti, has raised questions about the goings-on the bank's boardroom. Bungane's contract was terminated on mutual agreement allegedly due to disappointing first quarter results and regulatory reporting errors.
The leadership change marks the start of a new phase for the bank as it looks to consolidate growth achieved under its transformation strategy.
In a statement on Monday, the board said it carries a fiduciary responsibility to act in the best interests of the bank and its stakeholders, and that decisions taken by the board and executive leadership are guided by strict governance standards and regulatory oversight.
“As a collective, the board has a fiduciary responsibility to the institution and its stakeholders,” the bank said. “The board always strives to act in accordance with its fiduciary responsibility and in line with established and accepted regulatory compliance standards.”
African Bank said it operates within a comprehensive governance framework that ensures compliance with relevant legislation and regulatory requirements as a regulated financial institution. The bank regularly reports to regulators on key developments and significant decisions made by the board and leadership team.
The lender said that where issues relating to performance or compliance arise, leadership is required to act swiftly and decisively to address them.
“Where the Board and leadership of African Bank encounters issues of poor performance and / or non-compliance, it is incumbent on them to act swiftly in fulfilment of this responsibility,” the board said.
“All material findings are reported to the relevant authority, including the Prudential Authority, as and when they are identified, investigated and resolved.”
The comments come after ratings agency S&P Global Ratings noted in a recent bulletin that the leadership changes at African Bank are unlikely to lead to a significant shift in the lender’s strategy.
According to the agency, the transition “does not point to a major strategic overhaul”, adding that the bank’s governance framework “is and will remain adequate and prudent”.
Under Manyathi’s leadership, the bank is expected to focus on consolidating the gains made during the expansion phase of the Excelerate strategy, which was designed to transform the institution from a mono-line unsecured lender into a diversified banking group.
The strategy has involved expanding the bank’s product offerings, strengthening its capabilities and entering new market segments, including the business and commercial banking space.
The board said the current leadership team is now focused on delivering stronger bottom-line results, extracting value from newly acquired businesses and preserving capital to support the bank’s fastest-growing segments.
Part of this effort includes integrating acquired entities and strengthening internal systems and processes as the bank evolves into a more diversified financial institution.
Manyathi brings decades of experience in the South African banking sector to the role. Before joining African Bank, he served as chief executive of business and commercial banking at Standard Bank, where he oversaw strategy for the division and contributed to expanding financial services for businesses.
Earlier in his career, he held several senior leadership roles at First National Bank, including chief executive of branch banking and chief executive of corporate banking.
During his time at African Bank, Manyathi led the business and commercial banking division and played a key role in the institution’s growth and diversification efforts.
He also oversaw strategic transactions including the acquisition of Grindrod Bank and selected businesses from Sasfin, deals that strengthened African Bank’s capabilities and helped expand its presence in the micro, small and medium enterprise (MSME) market.
The board said it remains confident that the leadership team under Manyathi will meet stakeholder expectations and continue to drive the bank’s long-term growth. It also highlighted the bank’s internal leadership development framework, which is designed to ensure continuity and smooth succession planning at senior levels.
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