Absa has done what was unthinkable just a decade ago, entrusting the leadership of its underwhelming personal and private banking division to a non-South African executive for the first time.
None of its rivals has dared to pursue this path before. By and large, the executive committees of South Africa’s largest lenders, whose histories stretch back more than 100 years, are made up solely of homegrown executives at the group level.
The move by Absa ― which under new group CEO Kenny Fihla has a strong Pan-African outlook ― to appoint fintech expert Sitoyo Lopokoiyit as its next personal and private banking CEO with effect from April at face value looks like a gamble.
However, a closer inspection of the Kenyan-born Lopokoiyit’s CV shows he has a track record second to none in the Southern African market.
As MD of M-Pesa he was instrumental in growing Africa’s “super app” into one of Africa’s biggest fintech success stories, with more than 60-million clients, processing about $1bn a day in transactions.
The decision by Absa to go for a non-traditional banker in the key role sends two signals: the lender is looking to flex its muscle in the digital banking space as consumer preferences evolve and it is open to scouring the continent for talent in line with its Pan-African bank mantra.
Africa’s banking sector is evolving at a rapid pace, marked by innovation as millions of people on the continent are still unbanked — with digital platforms able to reach the remote corners of the continent that traditional banks can’t.
South Africa’s banks, which hold a dominant position on the continent, have a responsibility to impart knowledge gained over centuries of trial and error in the markets in which they operate.
This is the context in which Lopokoiyit’s appointment must be seen. Recognising talent outside one’s culture and borders is challenging.
Africa’s banking sector is evolving at a rapid pace, marked by innovation as millions of people on the continent are still unbanked — with digital platforms able to reach the remote corners of the continent that traditional banks can’t.
The US has done particularly well at this. Today, the CEOs of Google, Microsoft, Adobe and IBM are all non-US citizens.
In South Africa, MTN has thrived under the tutelage of Ralph Tendai Mupita, a Zimbabwe-born engineer who is one of the country’s most senior executives across sectors.
The country is also replete with failure due to boards looking outside the borders of Africa in appointing CEOs who tried to replicate European successes.
A case in point is Netherlands-born Pieter Boone, whom Pick n Pay roped in a few years ago to run the retailer. Despite his international pedigree, his tenure was marred by strategic missteps that saw the group report its first loss in more than five decades — a quagmire it is still recovering from.
The message is simple. If you’re running a multinational organisation there must be an openness to entrust group-level responsibilities to people outside your borders who understand the market you operate in and who have a track record of success in those markets.
All roads are leading to Kenya and East Africa for South Africa’s banks, as shown by Nedbank’s recent R13.9bn deal to buy Kenyan lender NCBA. Absa and Standard Bank have exposure to this region and are looking for opportunities to grow their presence.
There is a reason for this: Kenya, Tanzania, Uganda, Ethiopia and Rwanda are growing by more than 4%.
The results of this growth and other parts of the continent were better crystallised by Standard Bank results, which reported a profit of R19.7bn from its broader Africa portfolio in the 2025 financial year, more than Nedbank’s combined group profit.
Africa’s talent is rising to the top and South African banks must invest in it.
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