Standard Bank arguably stole a march on competitors in black empowerment in banking. Current CEO Jacko Maree led the industry’s negotiating team when it formulated its empowerment charter in 2003.
In July 2004, the bank announced a sweeping empowerment deal which will give 10% of its equity (worth $1.4bn) to its 2500 black managers in a structured deal. It will also want to be the first bank, largely for symbolic reasons, to appoint a black CEO.
Mr Tshabalala, 37, has risen rapidly through the ranks at Standard Bank, the market leader in South African banking. He is not one to court the limelight, known to disarmingly dismiss journalists’ questions with: “I’m just a Zulu boy from Soweto” [an apartheid era township]. But Mr Tshabalala has had a great impact. In the four years under his leadership, the Africa division has grown return on equity from 21.4% to 28.3%. Net advances are now R1.9bn ($332m). He has bedded down a clutch of acquisitions for the bank on the continent, particularly in the retail sphere, and has developed the infrastructure of the African network, establishing a sophisticated IT network.
Mr Tshabalala trained as a lawyer in South Africa and the US. He headed the structured finance division at Real Africa Durolink, a small bank that failed. On then joining Standard Bank he worked in structured finance in the corporate and merchant banking division until taking on the top job in the Africa division. His variety of positions at Standard – from structured finance to retail – suit the career progression of one being groomed for the top.
Risks: His youth means he won’t take over any time soon. Current CEO Mr Maree is only 48-years-old, giving time for other candidates to ascend the ranks before he hands over power.
