African Bank has started the kind of conversation no employer wants to have. The lender has opened formal consultations with its union that could end in the loss of up to 1,200 jobs — more than a quarter of its roughly 4,100 staff — and the closure of about 90 branches. The talks, held under Section 189A of the Labour Relations Act, began on Thursday with the finance union Sasbo.
Bought big, then bloated
The bank has been open about the cause: a run of acquisitions. Between 2022 and 2024 it bought Ubank, Grindrod Bank and two Sasfin businesses, and its cost base has since grown faster than its income. “This action has not been taken lightly and is a direct result of our current business realities,” African Bank said, adding that it had reached a point where it had “no other option but to review our staff costs”. The strain shows in the numbers: last month the bank posted a R624 million loss for the six months to end-March and pushed its long-planned stock-market listing back to 2030. It said its cost base had outgrown its risk-adjusted revenue, and that it was now chasing savings across IT, procurement and lease costs under a “redefined” strategy focused on operational consolidation.
A rescue bank under pressure
African Bank is the “good bank” carved out of the 2014 near-collapse of its former parent, and its main shareholder today is the South African Reserve Bank. It is also managing a leadership change, after former chief executive Kennedy Bungane resigned suddenly in March and Zweli Manyathi stepped in as interim CEO. Manyathi, who has previously said the acquisitions created duplication and inefficiencies, framed the cuts as painful but unavoidable. “We understand that this is a difficult period for the business and our people,” he said, “however, it is necessary for the future sustainability of the business.” At the end of 2025 it ran 399 branches, rising to 418 once kiosks and mobile bus branches are counted. The bank says it remains capitalised above regulatory minimums with enough liquidity to meet its obligations. What happens next rests with Sasbo, whose feedback will shape how deep the cuts go and how quickly.
