The amalgamation of three banks – African Bank, Grindrod Bank and Ubank – will place African Bank in a better position to play a strong and meaningful role in accelerating the growth of small, medium and micro enterprises (SMMEs).
African Bank Group CEO Kennedy Bungane told Sunday World this week that since they adopted the strategy in 2021, African Bank has evolved from a mono-line credit business into a fully fledged consumer and business bank, with a growing ecosystem of alliance partners poised to expand its product and service offerings.
Over the past 18 months, African Bank has acquired both Grindrod Bank and Ubank as part of its strategic shift towards a more diversified financial ecosystem.
The bank’s founder, Dr Sam Motsuenyane, recently passed away at the age of 97, leaving behind African Bank as one of his lasting legacies.
“Our founders, successful entrepreneurs, started this bank with just R70. They defied the odds, they faced up to a government that was determined to deny their dream, and still they made it happen,” Bungane said.
He said the bank decided to sponsor the Black Business Council’s (BBC) annual summit this year, as it did last year, as it believes the BBC’s purpose is aligned with the bank’s objectives.
He said the company supports the work the BBC does in uplifting black business and engaging with stakeholders to create visibility for businesses.
“The fact that the President of the Republic, Cyril Ramaphosa, was in attendance attests to the ground-breaking importance of the work that the BBC does, and the African Bank is there to back that work,” Bungane said.
“African Bank was founded at a time when black entrepreneurs were denied access to capital to fund their business ambitions. This bank was created as a solution to that obstacle.”
He said the bank’s acquisitions play a critical role in the realisation of its Excelerate 25 strategic objectives.
“This is further reflected in our annual financial results, which revealed diversified revenue streams and significant increases in non-interest income and insurance profits.
“Our continued growth will therefore put us in a very strong position to assist SMMEs and entrepreneurs, especially those hailing from previously disadvantaged areas,” Bungane said.
He said the story of the bank was an inspiring story of black excellence. “We believe that a crucial element in the answer to our country’s unemployment rates lies in the success of our entrepreneurs and SMMEs.
“They are the heartbeat of our economy. We are developing a unique and very bespoke offering that will allow them to concentrate on scaling their businesses.”
Bungane said that through many enterprise supplier and development (ESD) initiatives, the organisation was creating networking and business opportunities for small businesses.
“Through our ESD Capacity Building Programme, we seek to upskill and empower them through a specially curated course that gives them access to information and avenues for business development and funding.
“Through our preferential procurement practices, we have invited many black businesses into our African Bank family, giving them the experience and track record with which they can attract future business.
“This is what our founders believed. In the words of Dr Sam Motsuenyane, the African Bank was built to walk alongside our people on the path to prosperity.
“Motsuenyane and Dr Richard Maponya were pioneering businesspeople who knew that there would not be equality unless we committed ourselves to our purpose of advancing lives.”
