After an eventful 2012, the 2013 financial sector year looks set to be even more intriguing as the unresolved issues of indigenisation, recapitalisation and regulatory reform play out. Add to that mix a possible election and you have a potential cliffhanger. This article focuses, in no particular order, on people that could attain mover-and-shaker status and influence the course of financial sector events in 2013. Opinion by Omen Muza
George Manyere and Walter Kambwanji — Ably founded aptly-named Brainworks Capital and managed to mobilise reputable shareholders, including international partners and a number of local pension funds, all within a relatively short period of only two years. Both Manyere and Kambwanji have international experience gained on both sides of the Atlantic, which they are apparently putting to good use. Resultantly, Brainworks has been quite busy lately and in 2012 structured and advised on transactions worth a whopping $750 million which is no mean feat. The private equity company’s most notable investment is a stake in Ecobank Zimbabwe which is backed by a number of other local investments in mining, microfinance, insurance and the fuel/energy sector.
Gideon Gono — To his credit and despite initial ructions, the Reserve Bank of Zimbabwe (RBZ) governor made peace with Finance minister Tendai Biti, paving the way for a cordial, hand-in-glove working relationship which secured his relevance over the remaining part of his term of office. As he walks into the sunset, protecting his legacy must be uppermost in his mind, something he has, in fact, been unequivocal about. The forthcoming monetary policy statement will give some pointers on how he intends to bequeath a stable and well-capitalised banking sector as part of that legacy. Undeniably, the recapitalisation agenda puts him firmly in the financial sector spotlight, if not the driving seat, in 2013.
Stephen Gwasira — Having recently started a rebranding of the ZABG Banking Group, the work is cut out for him and his team. Gwasira must now walk the talk. Admittedly, it is not too long ago that ZABG emerged from a prolonged period of famine, but now with the backing of an ambitious and relatively deep-pocketed shareholder, the market is eager to see what sort of feast Gwasira will deliver for ZABG and its stakeholders.
Saviour Kasukuwere — Like Gono, he is one of the survivors from the 2011 list, apparently because of the unfinished business of indigenising the banking sector. In that regard, his and Gono’s fate are inextricably tied and their public spats on the issue bear testimony to a common fate. Bubbling with confidence after effectively indigenising the more significant mining sector — on paper, at least — Kasukuwere probably realises that surely the financial sector cannot hold out for much longer. He smells blood and 2013 is, to all intents and purposes, the year in which he will make the final push.
Tendai Biti — His reform agenda for the banking sector is gaining momentum and will no doubt be among the dominant themes of 2013 alongside recapitalisation initiatives. Biti has already put in motion a raft of reforms on bank ownership, bank charges and interest rates which are set to change the face of the local banking sector.
Peter Bailey — The sensational collapse of Interfin Bank Limited left a sour taste in the mouths of many stakeholders — regulators, shareholders, depositors, employees and many others. Following the extension of its period of curatorship by a further six months to June 2013, all these stakeholders will want to know whether the bank will reopen or not after that and the efforts of the man from KPMG are key in that regard. The fact that the authorities have not been forthcoming with information on the goings on at the bank means everyone’s ears are pricked for any new developments.
George Guvamatanga — The Bankers’ Association of Zimbabwe (BAZ)’s official response in early August 2012 to the new capital levels was quite revealing in as far as the unity in the sector is concerned. Do we or do we not have a two-tier banking sector? As the leader of BAZ, Guvamatanga will be expected to answer to this question and to provide the kind of leadership needed to stabilise the sector, while working closely with RBZ and the Ministry of Finance on the financial sector reform agenda. Additionally, as the president of the Business Council of Zimbabwe as well as the managing director of Barclays Bank which is in line for indigenisation, Guvamatanga is surely one to watch.
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Econet Wireless Zimbabwe —Econet is the only corporate person on the list. Having initiated the process of a 100% takeover of TN Bank, Econet will want to deploy its a bottomless pit of money, war chest or deep pockets (call it what you will) in order to impose the dominance of EcoCash, its fast growing mobile banking product, on the banking landscape. The question is how far will it go? The market will be watching whoever Econet chooses to lead the bank in 2013 — whether it’s the incumbent George Nyashanu or somebody else — for an answer to this and other questions.
Banking Ombudsman — The year 2013 will usher in a new centre of power in the bank regulatory stakes — the Banking Ombudsman. Banks will be watching him/her because he/she will be watching their conduct in respect of bank charges, interest rates and general service levels. Many questions are no doubt on the lips of stakeholders. Who is it going to be?
Will the office of the Ombudsman rise to the occasion and sustainably meet the contrasting needs of the banking public on the one hand and banks on the other?
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- Omen N Muza writes in his personal capacity. He is a banker and managing director of TFC Capital (Zimbabwe) (Pvt) Ltd, a Harare-based financial advisory, research and training company with interests in banking, technology and agriculture as well as the convergence area among them.
