The Association of Black Securities and Investment Professionals (Absip) Treasurer Khaya Sithole says he cannot rule out the possibility that racial motivation played a role in the Absa Group’s decision to part ways with outgoing CEO Daniel Mminele.
On Tuesday, the Absa Group confirmed that it was working on a suitable separation arrangement with Mminele.
Absa CEO Daniel Mminele steps down:
In response to media speculation, the bank said the Board of Directors had been engaging in various discussions surrounding the working relationship with him.
Mminele was the first black executive to lead the bank and will leave the group in less than 16 months.
Sithole says he cannot discount the possibility that race dynamics influenced the Board’s decision.
“There aren’t too many black professionals that have been given those opportunities to lead at those particular levels. That means that with a very small pool, when one exits the system, it becomes very noticeable. It becomes very clear that there’s a vacuum that’s being created,” adds Sithole.
“We’ve seen something similar happening at the African Bank a couple of months ago. I do feel that in the South African context, we still are struggling to groom black leaders for us to say there is a wide enough pool for a bank like Absa to say they can get what they are looking for.”
The video below is the full interview with Khaya Sithole:
Meanwhile, the Black Management Forum says it will write to the Board of the Absa Group to establish the reasons behind its decision.
