Meshack Mabogoane
The National African Federated Chambers of Commerce (Nafcoc), the main black business organisation, which formed the African Bank and has been its main supporter, has spoken out on the bank’s difficulties.
Nafcoc president Joe Hlongwane this week announced his organisation, whose members hold 35,3 percent of Afbank’s equity, is determined to get involved in the estimated R100-million recapitalisation exercise.
He said he hoped Nafcoc’s newly established investment company would take a significant stake to keep Afbank in black hands. He said it was likely Nafcoc would be a finance and equity partner with a major bank to revive and reposition Afbank.
New Africa Investment Ltd (Nail) has been active in Afbank affairs and holds, together with subsidiary Metropolitan Life, just less than fifty percent of the bank’s equity.
Nail this week said it would like to turn Afbank into a diversified financial services institution, a move that could well complement Nail’s mainstay, insurance. This could be a first merger of two main black economic empowerment companies, thus ensuring that Afbank remains in “black hands”.
The prospect of an entirely new board is now close should Afbank be rescued. This could be followed up by a management shake up.
A task force has been reportedly formed, following a meeting between Deputy President Thabo Mbeki, who expressed government’s “sensitivity” on Afbank’s fate.