Banking Sector Must Be Transformed Following Resignation of Absa CEO Daniel Mminele

20 April 2021

It is with shock that the news of Absa Group Chief Executive, Daniel Mminele resignation was announced today in a press statement released by the bank. This comes as a major surprise to many in the finance and banking industry, as Mr Mminele only served one year at the helm of one of South Africa's top banks.

Despite the agreement which was made by settlement for Mr Mminele to step down as a director and Group Chief Executive of the Absa Group Board and Group Executive, the reason for this, falls short to inspire confidence in the sector and the banks transformational agenda.

Some of the reasons made known to the public was that there was no alignment in terms of their strategy and culture between himself and the board, however, how was he in the employ in the first place if it was not a match to the organisational culture and his ideas were not in line with that of the rest of the board.

This resignation also signals that the finance and banking industry must be transformed and become inclusive of black executives. It cannot be that black professionals are side-lined and continue to find themselves at loggerheads with existing institutional cultures within banking firms.

The IFP therefore believes that that Mr Mminele owes South Africa a public announcement on what exactly the reasons are for his depature as Group Chief Executive.

Mr Mminele joined the Absa Group as Group Chief Executive on 15 January 2020 and is set to leave with effect at the end of April this year. Such a short term as Group CEO warrants an explanation to the public.

Issued by Inkosi Mzamo Buthelezi, IFP Deputy President and Spokesperson on Finance, 20 April 2021