Group Chief Executive Kennedy Bungane. Photo: African Bank
African Bank’s turnaround strategy since its 2014 curatorship and suspension from the Johannesburg Stock Exchange has driven growth and transformation with ambitions to re-list in 2027, its chief executive Kennedy Bungane said this week.
Founded in 1975 to serve black South Africans, African Bank grew rapidly through unsecured lending but collapsed in 2014 due to a massive loan book deterioration and rising bad debt, prompting curatorship by the South African Reserve Bank.
When it relaunched in 2016, the bank implemented a focused recovery strategy. This year, S&P Global Ratings upgraded African Bank’s long-term global scale issuer credit rating to B+ from B, with a stable outlook.
The bank got the prestigious Ecosystem Catalyst Award at the 2025 Global Entrepreneurship Congress in the US and the Digital CX award for best digital customer experience in Singapore.
The Mail & Guardian interviewed Bungane about the bank’s recovery and future plans.
M&G: What’s driven African Bank’s comeback since the 2014 curatorship? What were the key moments and decisions that helped turn things around?
Bungane: Our comeback, as you put it, truly came into being when we, as African Bank, reclaimed our heritage. The story of how this bank was built, and very importantly, why it was built, has been instrumental in guiding and shaping our strategic ambitions and the way we do business.
We believe in backing entrepreneurs who previously struggled to access financing, enabling them to build businesses that have supported and built families and industries.
For our 2025 Interim Results, African Bank Holdings Limited reported a 15% year-on-year rise in net profit to R202 million. We reported a robust capital adequacy ratio of 28%, well above regulatory requirements.
Improved risk management and a shift toward secured lending saw credit impairment charges drop 10%, helping reduce the credit loss ratio to 5.3%. African Bank also recorded strong growth in net advances, up 20% to R39.1 billion, with business and commercial loans surging by 49%.
Customer deposits rose 8% to R36.3 billion, continuing to anchor 91% of the bank’s funding base. Non-interest income grew 39% to R909 million, fuelled by higher use of digital platforms such as MyWORLD transactional accounts and credit cards.
African Bank also deepened its commercial banking footprint by acquiring Sasfin’s capital equipment finance business, following a previous deal for its commercial property finance division.
These moves aim to strengthen the bank’s presence in the MSME (micro, small, and medium enterprises) lending space. The focus has been on sharp risk discipline, smart acquisitions and relentless execution.
M&G: How pivotal has the team you’ve built since 2019 been in increasing the customer base of the bank and strengthening the loan book? What made this team so effective?
Bungane: As we have advanced along our strategic path, culture and leadership have taken on added significance. We have a talented and energetic leadership team at African Bank, one with the requisite experience and skills to build a sustainable, diversified bank that is digital and data-led.
Just as important is the way they have embraced our African Bank vision. Through our African Bank Leadership Compact, they have committed themselves to being stewards of our audacious heritage.
When we formulated the Excelerate strategy, our aim was to realise the bank that our founders first envisioned — a bank for the people, by the people, serving the people. To truly embody that vision, we had to evolve from a monoline credit lender into a fully fledged retail and business and commercial bank.
The targets we set ourselves were audacious, to say the least, but we did so with the knowledge that without audacity there would be no African Bank.
M&G: You’ve described your approach as “phygital”. What does that mean and how has it helped African Bank connect better with customers, especially in terms of financial inclusion?
Bungane: It’s the fusion of digital convenience and physical presence, mobile apps, online banking, plus branches and contact centres. Customers choose how to engage. For African Bank, this has been critical to allow the inclusion of tech-savvy clients who use the app while other more traditional customers still prefer walking into branches and calling contact centres.
It is that knowledge that propels us toward an IPO — an initial public offering — where shares are offered for public purchase, a historic milestone that will scale our impact as a future-focused bank.
This is more than a growth strategy; it’s an invitation for South Africans to own a stake in the bank that was built for them, a bank that has grown into a market leader that is reimagining banking. With deliberate intent, we are ushering in a new era of inclusive, African-led banking that is grounded in our heritage and designed for the future.
M&G: African Bank is eyeing a return to the JSE in 2027 — what’s the roadmap to getting there and how far along are you in that process?
Bungane: The bank’s JSE listing has been pushed out, contingent on market conditions and growth milestones. In the near term, African Bank plans to ramp up secured lending; roll out a digital MSME lending platform and boost investment in its digital infrastructure, compliance and cybersecurity, all designed to support long-term growth and build investor confidence ahead of its eventual market debut.
In terms of the IPO, phase 1 is done — a 10% staff share scheme (iKamva Lethu) is live. Phase 2 — a BEE (black economic empowerment) retail offer and management incentive plan — is underway. With strong backing from key shareholders like the Public Investment Corporation, the focus now is on scaling, diversifying and cementing a solid equity story ahead of the IPO.
M&G: What does the bank’s Excelerate strategy involve and how has it reshaped your marketing approach to win back trust from both businesses and customers?
Bungane: “Excelerate” is our growth engine. expanding into the business and commercial, transactional, insurance, MSME lending space and more. It’s backed by bold marketing (“audacity to believe”) and strategic buys like Grindrod Bank and Ubank.
More than just products, it’s about projecting confidence, showcasing success stories and proving African Bank is a true partner in customer growth.
M&G: What is African Bank’s view on South Africa’s credit scoring system? How does it affect your customers and what changes would you like to see to better support small businesses and entrepreneurs?
Bungane: We believe there’s always room for improvement, especially for small businesses. Traditional models exclude viable entrepreneurs due to a lack of collateral or formal records.
African Bank wants reform: alternative data, open scoring models and public-private credit guarantees. The bank is already acting — fast-tracking MSME loans, with turnaround times in under 48 hours.
Our mission is to close the R350 billion MSME funding gap and rewrite the rules of credit access. African Bank is a bank that was built by entrepreneurs, hence our understanding of the needs of the MSME market and providing solutions that allow them to thrive.