Irecently watched a moving SABC interview with Dr Sam Motsuenyane, talking about how the original African Bank was started in the middle of impossible government restrictions on black business.
It was the first day of the inaugural conference of the National African Federated Chamber of Commerce and Industry (Nafcoc), in May 1964. The idea of establishing a bank specifically for black people was tabled. Black business had to find a way to secure capital for themselves because the banking system was simply not interested.
Motsuenyane said the idea was supported "hilariously", lightly referring to both the excitement in the Orlando township venue about the prospects of such an idea, as well as the doubt that quickly crept in about whether this was even possible.
The inaugural Nafcoc president, the late Dr Richard Maponya, apparently noted that, since there were 18-million Africans in the country at the time, collecting R1 from each one would ensure the bank could kick off in less than a year. But when the leaders started talking to the people, it didn't quite work out that way.
We ’d better do the
deal quickly before
the comrades who
resolved to establish
a ‘state bank’ start
getting ideas
"People who have never seen themselves create anything and succeed have a mindset that nothing will ever succeed. [There was] that negative attitude that said, 'Where have you ever seen a black man do anything and succeed and prosper?'
"That delayed the start of African Bank," said Motsuenyane.
Nafcoc members famously put together R70 on the first day of their conference and it took another 11 years to garner enough support to raise R1m. African Bank launched its first branch in 1975 in Ga-Rankuwa, northwest of Pretoria, with Motsuenyane as chair.
This story got me thinking about the potential "once in a lifetime" opportunity that is now being presented for black South Africans to own a big chunk of African Bank.
In case you missed the news that broke a few months ago, the South African Reserve Bank has started the process to divest of its 50% shareholding in African Bank, following its decision to support the bank when it fell on difficult times and was placed under curatorship in 2014 owing to spiralling bad debt.
It was never the Reserve Bank's intention to hold its equity stake indefinitely, particularly because its shareholding created a potential conflict of interest.
What is even more interesting is the rest of the share register. Making up the balance is the Government Employees Pension Fund at 25% and a consortium of South African banks holding a total of 25%, ranging between 1% and 7%.
Now, if you consider the fact that Reserve Bank governor Lesetja Kganyago has said that the central bank might opt for an initial public offering to a range of shareholders, as opposed to selling to a specific shareholder, this could be a unique chance for South Africans to finally have that black bank.
We've had a number of very successful broad-based BEE share schemes over the years, and there is no doubt that these can work.
The intention of such schemes is to give black South Africans the opportunity to own a stake in a company and participate in its growth.
In fact, the difference between the ones that work and those that have failed is the underlying performance of the companies invested in. The schemes - on their own - work.
The JSE now has an empowerment segment, which caters for companies that have implemented BEE share schemes, allowing participants to buy and sell shares in a regulated environment.
Since 2016, the restructured African Bank has made good progress towards achieving its objectives, while increasing profits and building a stronger balance sheet.
We officially have a seller of 50% and I can't see the other banks staying on much longer either.
This means we could have a unique opportunity for a broad-based BEE scheme involving a big chunk of a revitalised African Bank. The bank has brought in the experienced Kennedy Bungane as CEO, and he seems to announce another impressive black executive joining him every other week.
There is no doubt that we have more liberties than the 1960s. Look at us, we even have some political power - yes, "some".
We also have a much larger black middle class, notwithstanding the poverty and high unemployment we still contend with.
We've also seen enough black men and women do things, and "succeed and prosper", so I'd like to believe our self-worth has improved too.
Perhaps I'm smoking my socks. Perhaps it's the failed investment banker in me. But I think there is a transformational deal to be done with the Reserve Bank's exit from African Bank.
And we'd better do it quickly before the comrades who resolved to establish a "state bank" start getting ideas.
• Khumalo is CEO of KhumaloCo and founder of I Am An Entrepreneur
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