African Bank was one of the first banks to feature annual financial reporting based on the newly applied Basel 3.1 regulatory parameters. Over the years, the bank has seen significant growth in its customer base, expanding from 1.3 million to 6.3 million during Kennedy Bungane’s five-year tenure as CEO. Under his leadership, gross loans and advances increased from R26.7 billion to R44 billion, indicating a strong growth trajectory for the institution.
Breaking Development
On March 9, 2026, it was announced that Kennedy Bungane had been ousted as CEO of African Bank amid serious regulatory reporting errors and a notably poor first-quarter performance. The board determined that Bungane was unfit to lead the bank’s turnaround strategy, which has become increasingly critical as the financial year approaches its end in September.
In a move to stabilize the organization, Zweli Manyathi was appointed as interim Group CEO effective March 6, 2026. The board expressed confidence in Manyathi’s ability to guide the bank through this challenging period, emphasizing the importance of a smooth transition.
Thabo Dloti, a member of the board, stated, “The board is committed to a smooth transition, and we are confident that Zweli provides a safe and skilled pair of hands, with the rest of the executive team, to steer the group to continue its transformation to a diversified, fully fledged financial institution that services both personal and business customers.” He also thanked Bungane for his contributions, highlighting the significant role he played in the crafting and implementation of the Excelerate Strategy.
Despite the board’s positive remarks about Bungane’s tenure, there are indications that the circumstances surrounding his departure were more complex. Some observers noted that the announcement was part of a carefully crafted public communication strategy to mask the real reasons behind Bungane’s firing.
What Happens Next
With the South African Reserve Bank holding a majority stake in African Bank after placing it in curatorship in 2014, the focus will now shift to how the new leadership will address the regulatory issues and improve the bank’s financial performance. The Prudential Authority’s scrutiny of the bank’s operations will likely intensify as it seeks to ensure compliance with regulatory standards.
As the bank navigates this transition, stakeholders will be watching closely to see how Manyathi and the executive team implement changes to restore confidence and drive growth in the coming months. Details remain unconfirmed regarding the specific strategies that will be employed to address the challenges facing African Bank.
