Connect with us

Wealth

The Big Bank Theory: South Africa’s Banks Of The Future

Published

on

2 of 3
Use your ← → (arrow) keys to browse
African Bank’s CEO Basani Maluleke. Picture: Motlabana Monnakgotla

Phoenix from the ashes   

African Bank’s CEO Basani Maluleke is overseeing the rebirth of a bank that went into administration in 2014.

The revival will allow the bank to start conversations on an exit strategy with its shareholders, the South African Reserve Bank, the Government Employees Pension Fund and six of South Africa’s biggest lenders.

Under Maluleke’s leadership, African Bank is venturing into digital banking. In May, it launched its very first transactional product MyWORLD, offering “the cheapest transactional banking fees in South Africa’s market”. 

MyWORLD operates across African Bank’s Omni-channel digital infrastructure. The bank partnered with Direct Transact, a provider of electronic banking and independent payment processing products, and ebankIT, a Portuguese company that develops Omnichannel digital banking platforms.

The bank took this route, explains the self-aware leader, as it wants “to be able to tap into fintechs and into people who do one thing really well, because there’s no way that we can do everything really well, so we identified the bank in Portugal, as a fintech that’s doing really great work around customer interfaces and as a result, they are a really strong partner of ours and assisting us with the app as well as our online channels”.

Omni will provide the bank’s customers with convenience and seamlessness, reckons Maluleke.

“We know for a fact that one of the things that irritate customers is when you go to a bank and they ask you for the same information over and over. You are giving them your KYC [know your customer] documents five times in three years and the key becomes how do you make sure that irrespective of which channel you engage with us on, you are able to continue seamlessly from one to the end without having to give exactly the same information over and over?”

Maluleke believes the product will be a winner because African Bank doesn’t have the “same legacy issues of the larger banks, we are not protecting massive cost infrastructure that the other banks have and I think it puts us in a very, very good position to be successful. We’re all playing a very similar game and we are all chasing very similar customers, the key to success is going to be who’s going to be able to deliver the best value proposition and right now we think we definitely are well-positioned to do that”. With the change, African Bank hopes to lock in its existing customer base, who predominately earn between $300 and $1,400 and target people on the higher end of the spectrum.

Where does Maluleke see banking in the next five years?

The entrepreneur envisions that banks will move out of their traditional offerings, using data to decide what those should be.

She elaborates: “Investec talks a lot about its travel program because it knows that its customers want more travel but we know that our customers are much more focused on… how do you help me to access education in ways that make sense to me? So, for us it is about understanding what your customers need and being able to provide it to them in a way that is seamless and affordable.”

She imagines that ChatBanking will grow, “everybody wants to be able to bank on WhatsApp or on social media”.

The social-justice advocate also sees the rise of invisible banking.

“You want to be able to wake up and not really have to bank, so you want to be able to wake up and talk to your virtual assistant, say Siri, Alexa or whoever else comes up over the course of the next five years… Banking must come to you as opposed to you having to go to it, that’s where this idea is going. We were talking about the idea of the invisible bank that banking kind of happens between everything else and it’s the glue that holds everything that you do together without you having to deliberately go and log into this thing and move on…”

2 of 3
Use your ← → (arrow) keys to browse

Continue Reading
Advertisement
Comments

Wealth

Jeff Bezos Unloads Another $990 Million Worth Of Amazon Shares In Early August

mm

Published

on

By

Amazon founder and CEO Jeff Bezos sold over 530,000 Amazon shares in the first two days of August for $990 million. After taxes, he will net an estimated $750 million in cash from the sales. 

The sales on August 1 and 2 followed $1.4 billion (after-tax) worth of Amazon stock he sold in the final three days of July. 

As the richest man on earth, Bezos is now worth an estimated $110.1 billion, using Monday’s closing share price for Amazon.

READ MORE | Jeff Bezos Sells About $1.8 Billion Worth Of Amazon Shares In Three Days

A spokesman for Amazon has not commented on the purpose for Bezos’ last stock sales. The leading theory is that it is to fund Blue Origin, a space exploration company that Bezos founded in September 2000. Bezos told journalists at a space exploration conference in 2017 that he was funding Blue Origin by selling some of his Amazon shares.

According to documents filed on Monday afternoon with the Securities and Exchange Commission, the world’s richest man sold over 530,000 shares of Amazon when the stock price was around $1,900 a share. On Monday, the stock closed at $1,765 a share.

-Angel Au-Yeung; Forbes Africa

READ MORE:

Jeff Bezos And Elon Musk Want To Get To The Moon—They Just Disagree On How To Get There

Jeff Bezos To Give MacKenzie 25% Of His Amazon Stake, Worth Tens Of Billions, In Divorce

Jeff Bezos Gains $2.8 Billion, Reaches Highest Net Worth Ever

Continue Reading

Cover Story

Feisty And Fearless Pioneers Thandi Ndlovu & Nonkululeko Gobodo

mm

Published

on

By

Prev1 of 2
Use your ← → (arrow) keys to browse

Thandi Ndlovu and Nonkululeko Gobodo, moulded by South Africa’s apartheid past, tore their way into male-dominated sectors , leading them boldly through a quarter century of democracy. Failure was never an option.


On a sunny winter’s afternoon in a quiet suburb of Randburg in greater Johannesburg, a second white Mercedes-Benz pulls up in the driveway of a photographic studio, and finds a shady spot to park.

Already seated next to a pool glinting blue in the sunlight, an elegant woman dressed in black and white sips green tea and talks about her early life growing up in the former Bantustan of Transkei in South Africa.

Absorbed in recounting her story, she looks up as a tall, slender woman, also in a chic black and white ensemble, walks towards her. The two women beam in recognition. They are here to be photographed by FORBES AFRICA and to share their unique stories as businesswomen in two traditionally white male-dominated sectors – auditing and construction.  

This year, South Africa celebrates 25 years of democracy. As the country started shaking off the shackles of oppression in the 1990s, both these women embarked on their paths to greatness. Both had been moulded by the harsh final years of apartheid, gaining the strength and conviction to fight for what they believed in.

In the process, they built successful businesses, changed perceptions and became role models.

And as with all stories of achievement, their journeys came with times of adversity.

Nonkululeko Gobodo. Picture: Motlabana Monnakgotla

Nonkululeko Gobodo: The visionary in auditing

 As a young girl, Nonkululeko Gobodo had very low self-esteem. She was shy and quiet and as the middle child in a family of five children, she felt overshadowed by her very outgoing older siblings. Her mother made it clear that she thought Gobodo wasn’t “going to amount to anything”.

Yet, there were factors in her upbringing, at home and in her community, which shaped her and prepared her for a future as a captain of industry.

Her mother was very hard on her. “I’m someone who needs affirmation and she did the opposite of what I needed. Fortunately, my father was doing that, he was doing the affirmative things.”

As an educator, her father was excited when she achieved “goodish” results at school, even slaughtering a sheep in celebration.

“When my parents were running shops, I used to be the one who would help in running the shops during the holidays. And I was quite young to be given the responsibility. My mother was literally taking a holiday, and I would run the shop perfectly, no shortage or anything like that. So, in spite of the fact that she was too hard on me, she must have thought she was nurturing this talent and making me strong.”  

Growing up in the then independent Transkei (now the Eastern Cape province of South Africa), Gobodo was largely sheltered from the impact of apartheid in other parts of the country.

“I lived in this world where you were sort of cushioned from what was happening in South Africa. So you were socialized to be a fighter, to be strong. My parents used to say that we should never allow anybody to tell us there were things we cannot do,” she elucidates.

It was an everyday thing to see black people running a variety of formal businesses like hotels, garages and wholesalers.

“I suppose I was very fortunate in that I was raised by these parents who were in business, who were working very hard during those times and with very strong personalities, both of them. Within the Xhosa tribe itself, although there is patriarchy and all that, Xhosa women are very strong and they are sort of equal partners with their husbands.”

Still very young, Gobodo fell pregnant. Her parents insisted on marriage. The marriage would end several years later, after the birth of three children, when she was 34 years old.

While taking a gap year working at her father’s panel-beating shop in Mthatha (then Umtata), during her first pregnancy, Gobodo discovered her calling. While her parents thought she would be well-suited to a career in medicine, she found joy in accountancy.

The gap year also revealed her innate strength to stand up for what she believed in. For the first time, she encountered racism. White managers remained in place when her father bought the business from the Transkei Development Corporation (TDC).

“They were really so upset by these black people who had taken over this business, and they were just bullying everyone. So I was able to stand up to them and then I realized I’m actually smart, I’m actually not this thing that my mother was saying, that I’m not just smart, but I’m strong, I’m tough, I can stand up to these men during apartheid years and it was not because my father owned the shop, but it was this thing of suddenly discovering who you are for the first time and just waking up to who you are and suddenly knowing what you wanted to do. Oh wow, accountancy, I didn’t know about that,” she smiles.

She was also inspired by the fact that black auditors did the books for her father’s business. They were WL Nkuhlu & Co, owned by Professor Wiseman Nkuhlu. Her father supported her decision to study BCom and she enrolled at the University of Transkei (now Walter Sisulu University).

Gobodo became a star performer at university and her confidence grew. After qualifying, the university offered her a junior lectureship. While there was no racism in the academic environment, it was here that she had her first taste of gender discrimination. A male colleague instructed her to do filing. She thought this was ridiculous considering her position, and she refused. He treated her as an equal from then on. 

“I made a decision to fight the system differently,” she says. “I was sure there was no system that would determine who I am and how far I can go. I used to say this mantra to myself: ‘Your opinions of me do not define me. You don’t even know who I am’. So I never allowed those things to get to me.”

Early on, she already had a vision to have her own practice, so she was not distracted by her peers complaining while doing their articles. She was determined to take advantage of the opportunity to get the best training she could get. “Those guys never became chartered accountants, so it was a wise thing not to join them,” she smiles.

In 1987, she made history when she became South Africa’s first black female chartered accountant.

Working at KPMG, she grew to rapidly build her own portfolio of challenging assignments.

“It was my driving force right through life to prove to myself and others that there was nothing I couldn’t do. And for me, being black really gave me purpose. I can imagine that if I was living in a world that was readymade for me, life would have been very boring,” she says.

She was offered a partnership eight months after her articles. She would be the first black partner, and the first woman. It was very tempting. But she remembered her vision to start her own practice and taking the partnership would be “the easy way out”. 

So she moved on to the TDC, where at the age of 29, she was promoted from internal audit manager to Chief Financial Officer within three months. Again in 1992, she decided to break “the golden chains” of the TDC to pursue her destiny. But first, she restructured her department and empowered five managers; thoroughly enjoying the work of developing leaders, and setting the tone for the business she runs now – Nkululeko Leadership Consulting.

READ MORE : WATCH | The Making Of The New Wealth Creators Cover

 At the time, her father questioned her decision to leave such a lucrative position to take the risk of starting a business. “Everybody was so scared for me and was discouraging me. I realized these people were expressing their own fears. I have no such fears. And it’s not saying I’m not fearful of the step I am taking, but I’m going into this business to succeed.”

The best way to do that was to step into the void without a safety net. So, no part-time lecturing job to distract her from her vision. “If I had listened to them, how would I have known that I could take my business this far?”

She describes herself as a natural entrepreneur. Yet, the responsibility of leading a business is not a joke.

“It sobers you up,” she says. “You realize you have to make this work, otherwise you’re going to fail a whole lot of people. But when you have the courage to pursue your dream, things sort of work out. Things fall into place.”

Eighteen months into the practice, she took on a partner and felt an “agitation for growth”. It came with a “massive job” from the Transkei Auditor General, and things changed overnight. With only four people in their office, they now needed 30 to complete the assignment and they hired second and third year students who attended night lectures at the university.

“At that time, as a black and a woman, you had to define your own image of yourself, and have the right attitude to fight for your place in the sun. And I can’t take for granted the way I was socialized and raised by my parents. My father was such a fighter. And he shared all his stories at the dinner table. He used to say in Xhosa: ‘who can stand in front of a bus?’, so you just have those pictures of yourself as a bus. Who can stand in front of me and my ambitions in life,” she laughs.

This self-confidence, belief in herself, direction, purpose and her clear vision steered her ever further.

“Unfortunately, I had a fallout with my partner Sindi Zilwa [co-founder of Nkonki Inc, a registered firm of auditors, consultants and advisors], and that was a hard one, a very difficult one. I used to say it was more difficult than my divorce, because that happened almost at the same time. First, the divorce started and a few months later, I divorced with my partner,” she says.

“It was a lonely time. It is amazing that out of hardship, we find an opportunity to grow and move to the next level.”

She went on a five -week program with Merrill Lynch in New York in 1994. On her return, she saw herself being cut out of negotiations to establish a medium-sized black accounting firm. While these plans were scuppered now, her vision still survived and no one could take that away from her.

She approached young professionals who were managers at the big accounting firms in Johannesburg to join her. “But you can imagine, they were young, they were fearful. It took about eight months to persuade and convince them.” 

Gobodo understood their fears as she herself had to overcome her doubts about moving from a small community in the Transkei to the big city. But the visit to New York had helped her overcome her fear. If she could make it there, she could make it anywhere.

Gobodo Incorporated was established in 1996. It was the third medium-sized black accounting firm.

The others were Nkonki Sizwe Ntsaluba and KMMT Brey.

She believes that providence has always sent “angels” to her at the right time in her life. Peter Moyo, a partner at Ernst & Young at the time, gave his time and invaluable experience leading to the establishment of Gobodo Incorporated. Chris Stephens, who was the former head of consulting for KPMG, facilitated bringing a fully-fledged forensics unit to the firm. They took up a whole floor at their new Parktown, Johannesburg offices instead of the planned half-floor.

From a small practice in Mthatha, Gobodo Inc. grew to a medium-sized company with 10 partners, 200 staff and three offices – in Durban, Cape Town and Johannesburg. It was an exciting time.

Gobodo firmly believes that visions are not static. Once a summit is conquered, there will always be another one waiting for you.

The next summit beckoned her 15 years later. Black Economic Empowerment (BEE), a program launched by the South African government to redress the inequalities of apartheid, was firmly established and accounting firms were compliant, and Gobodo Inc. started losing out on opportunities as previous joint-audits done in partnership with the big accounting firms fell away.

She started talks with Victor Sekese of Sizwe Ntsaluba to merge the two medium-sized firms.

Again, people questioned the wisdom of the move. What if the market was not ready for a large black accounting firm?

There was somewhat of a culture clash when the “somewhat older, disciplined, bottom-line” Gobodo Inc. and the “younger, more creative” Sizwe Ntsaluba teams came together.  A new culture combining the best of both emerged. Ironically, while no people were lost during the merger, some were uncomfortable with the culture change and left. 

In the beginning, “a lot of sacrifices had to be made to make this thing work. Like the name. My partners were saying Nonkululeko’s name should be in front because she’s the only remaining founder,” explains Gobodo.

Sizwe Ntsaluba wanted their name up front, and it was a deal-breaker. She decided the vision was bigger than her and she wouldn’t allow anything to jeopardize it. The company name was agreed on: SizweNtsalubaGobodo. The business grew to 55 partners and over 1,000 staff. 

“I think we underestimated how hard it would be,” she says. “Mergers are difficult in themselves, around 70% of mergers fail. People were laughing at us saying ‘ah, black people, they’re going to fight amongst each other and fail’, so we were determined not to fail. Failure was not an option.”

When they did their first sole tender, “you could smell the fear in the passages. There was so much fear”. Then the call came from the chair of the audit committee of Transnet to say the board had decided to appoint SizweNtsalubaGobodo as the sole auditors.

Gobodo had led the way to the establishment of the fifth largest accounting firm in South Africa. Her vision had been realized.

“It was just so fulfilling, really so fulfilling,” says the grandmother-of-three. “So it was time to move this thing forward.”

 She was the Executive Chairperson and Sekese was the CEO. She commissioned partners to find the best governance structure for the firm. Their recommendation was for one leader to lead the firm forward, and a non-executive chair.

“That was going to be boring for me. If I was not going to be part of driving this vision forward, it was time for me to leave,” Gobodo says. “There comes a time that the founders must leave and hand over to the next generation.”

Although she had achieved her dream, it was not easy to let go. The separation took three months.

“I learned a lot about letting go at that time. We have to let go layer by layer. I had to accept that they would do what they had to with the legacy. And here they are now, having merged with Grant Thornton. The dream was to be a true international firm, and now with SNG Grant Thornton, it is still basically a black firm going into the continent. The dream does not die. This is still a black firm taking over an international brand.”

Gobodo now heads Nkululeko Leadership Consulting, a boutique, black-owned and managed leadership consulting firm. Here, she can live her passion for developing leaders. She also sits on the boards of PPC and Clicks. The future awaits her with more promise.

READ MORE : Businesses Of The Future: 20 New Wealth Creators On The African Continent

Side bar: ‘The World Is Not Kind To Strong Women Leaders’

What were the greatest challenges she faced during her career?

“Making a success of your life in the South Africa of the past. As a black person, you always started from a place of being dismissed, as a woman, you always started from a place of being dismissed. So you had to be true to yourself and find yourself for you to be able to succeed. And that was hard. I don’t want to make it as if it was easy.

“The second thing was being a strong woman leader. The world is not kind to strong women leaders. And for me, being a strong woman leader was the hardest thing because both men and women don’t accept a strong woman leader. So you have this big vision, you are driven, you have to move things forward and if you’re a strong man, you’re accepted.

“But if you’re a strong woman, you are not. So you had to grow up and mature and try to find that balance of still moving people forward to achieve your vision, because I realized early that I would not get to the finish line without them. I could not leave them behind. So I always had to find that balance and sometimes, I didn’t do it well.

“Because there was this urgency of moving forward and you have to drag people with you. And they didn’t take kindly to that. Do I regret it? No, not really. I don’t think I would have achieved what I had. I had been given these gifts as a strong woman for a reason. I just feel sorry for strong women leaders, because it is still not easy for them today.”

Prev1 of 2
Use your ← → (arrow) keys to browse

Continue Reading

Wealth

Jeff Bezos Sells About $1.8 Billion Worth Of Amazon Shares In Three Days

mm

Published

on

By

On Wednesday evening, hours after the stock markets had closed, Amazon founder and chief executive Jeff Bezos filed paperwork with the Securities Exchange Commission which showed he had sold $1.8 billion worth of Amazon shares over the final three days of July. After taxes, he will net about $1.4 billion.

Bezos sold slightly more than 900,000 shares of Amazon between July 29 and July 31, when the e-commerce behometh’s stock price was around $1,900 a share. His net worth is now $115 billion, using Wednesday’s closing share price.

The last time that Bezos sold Amazon shares was in October 2018. 

READ MORE | Jeff Bezos And Elon Musk Want To Get To The Moon—They Just Disagree On How To Get There

The new filings also show that Bezos has given his ex-wife MacKenzie 25% of his Amazon stake, or 19.7 million shares. In April, as the couple announced they were getting divorced, Mackenzie tweeted that Jeff would keep 75% of his Amazon stake.

Jeff Bezos will continue to exercise voting control over the 19.7 million shares of Amazon he transferred to his wife, according to an SEC filing in April. Her Amazon shares are worth nearly $36.8 billion, making her the third richest woman in the world.  

Jeff Bezos has sold large chunks of Amazon stock before, but this appears to be the largest sale, measured in dollars. Bezos sold Amazon stock worth $1.7 billion in 2017 in two separate transactions in May and November of that year. It was reported that Bezos planned to sell $1 billion worth of stock every year to fund Blue Origin, his space exploration company. 

READ MORE | Jeff Bezos To Give MacKenzie 25% Of His Amazon Stake, Worth Tens Of Billions, In Divorce

A spokesman for Amazon has not responded to requests for comment regarding the purpose of Bezos’ latest stock sale.

Bezos has done little in terms of philanthropy so far. In September 2018, he announced the Bezos Day One Fund, a $2 billion pledge for two causes: helping homeless families find shelter and creating Montessori-inspired preschools in the U.S. 

-Angel Au-Yeung; Forbes

READ MORE:

-Jeff Bezos Says National Enquirer Owner Tried To Blackmail Him

Jeff Bezos, World’s Richest Person, Announces Divorce After 25 Years Of Marriage

Continue Reading

Trending