Previous black shareholders to reacquire stake in African Bank

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African Bank has embarked on a journey to allow previous black shareholders to reacquire a significant stake in the bank. The SA Reserve Bank currently owns more than 50 % of the shares in African Bank Holdings.

The bank was placed under curatorship in 2014.

This emerged at the memorial service of the bank’s founder Dr Sam Motsuenyane. Before his death, Motsuenyane was working with a number of black businesspeople to reinvest in the bank.

The SA Reserve Bank has tried to assist black businesspeople to reacquire their shares in African Bank, but the group failed to raise the required capital. Now they want to use African Bank’s listing on the JSE as another opportunity to buy a stake in the group.

Motsuenyane, along with other black entrepreneurs founded the African Federated Chamber of Commerce (NAFCOC) in 1964 and in 1974, they pioneered the establishment of African Bank. NAFCOC, as a voice of the black business sector, has diminished over the years and the bank now has new shareholders.

“We are now on a drive once again to mobilize black people to prepare themselves to buy shares when the listing come, it should be in a year or two so that we retain the control of the bank,” says Willy Modise from NAFCOC.

African Bank CEO Kennedy Bungane has taken it upon himself to ensure that the bank’s shareholding is eventually returned to its rightful shareholders.

“We shall continue to ensure that black business, black entrepreneurs, black women businesses own this bank way before we go and list it and make sure that it’s floating once again at the Johannesburg Stock Exchange. And we shall do this to celebrate Doctor Sam’s legacy, not just now, but well into our future so that we can hand over African Bank stronger, better to the next generation of leaders and ensure that by doing so we enhance lives as he has enhanced ours.”

While the bank’s original shareholders have since lost their stake in the group, African Bank says 96.5% of its staff own 10 % of the bank, and more than 60 % of those are black women.

Video: African Bank Shares – Previous bank shareholders to re-acquire significant stake