New CEO for major South African bank that plans to retrench 1,200 workers and close 90 branches
African Bank has confirmed the appointment of Zweli Manyathi as its Group CEO, who takes on the role on a permanent basis amid a series of struggles facing the bank.
African Bank confirmed that Manyathi, who was appointed interim Group CEO in March, has received approval from the Prudential Authority to become its permanent CEO.
He joined the bank’s boards in September 2022 as an executive director and Chief Executive: Business & Commercial.
He brings over 40 years of experience across retail, business and commercial banking to the top job.
He was CEO of Business and Commercial at Standard Bank, where he oversaw strategic direction and contributed to financial service delivery.
Before this, he held numerous executive and senior positions, including CEO of FNB Branch Banking and CEO of FNB Corporate Banking.
The board said that it is confident that he possesses the requisite knowledge, skills, experience and qualifications to fulfil the responsibilities of CEO.
“The appointment supports continuity within a strategically critical executive role and aligns to the group’s broader leadership continuity and succession planning framework,” it said.
“The Board has previously considered executive continuity requirements within the context of succession planning and as such Mr Manyathi was an immediate successor to the Group CEO role.”
He holds a Bachelor of Commerce Honours in Financial Management from the University of South Africa.
He also completed a Senior Executive Programme (SEP) through both Wits’ and Harvard’s Business Schools.
He also studied at a Professional Development Programme (PDP) through the City University of New York.
The group said that he brings extensive strategic leadership and execution capabilities, as well as turnaround experience, which will be essential given the group’s struggles.
1,200 employees and 90 branches at risk
The bank recently announced that it is contemplating a massive restructuring, which could impact 1,200 employees and see 90 branches close across South Africa.
The bank said it is contemplating a Section 189A retrenchment process following a net after-tax loss of R624 million for the six months ended March 31 2026.
The group said that costs were outpacing its risk-adjusted revenue. Although the group said it is exploring all cost-saving avenues, it also said it has reached a point where it has to review staff costs.
It’s planned initial public offering, which would reduce the South African Reserve Bank’s stake in the bank, has also been pushed back to 2030 amid heightened costs.
The group has been on a large-scale acquisition drive over the last several years, with billions spent on companies.
It acquired Business Bank, Grindrod Bank, for R1.5 billion; Ubank’s assets for R80 million; and Sasfin Capital Equipment Finance and Commercial Property Finance Businesses for R3.25 billion.
It did, however, pull out of a deal to acquire Eskom’s R5.7 billion Home Loan book, which would have marked its entrance into secured lending, as it focused on its other completed acquisitions.
The group also faced a sudden leadership upheaval when its former Group CEO, Kennedy Bungane, abruptly resigned in March amid poor performance and a financial reporting error.
The bank faced criticism from the Prudential Authority after a controversial loan within the group’s own subsidiaries attempted to increase its capital adequacy ratio.
Trade union SASBO has slammed African Bank’s premature announcement of its contemplation of the Section 189A consultation process, as well as the announcement’s public nature.
“SASBO views the manner in which this process has unfolded as unacceptable. Retrenchments are not merely a business exercise; they have profound consequences for workers,” SASBO said.
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