Fri. Feb 21st, 2020

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Reserve Bank Starts Process To Sell Its 50% Stake In African Bank

African bank Facebook page.

The Reserve Bank has started the process of appointing an advisor to manage the sale of its 50% holding at African Bank, six years after injecting R5 billion to rescue it.

African Bank was placed under the central bank’s control in 2014 after nearly collapsing under the weight of bad loans.

African Bank said the central bank had issued a request for a proposal regarding the sale of its stake.

The Reserve Bank said it anticipated that the process would be completed within 18-24 months after the identification of a suitable buyer.

While addressing media in 2019, the Reserve Bank’s deputy governor Kuben Naidoo said the bank never intended to hold on to the shares.

“It is not the intention of the Reserve Bank to own the share for a very long time but we do want to ensure that the bank is sound and stable before we exit,” Kuben said at the time.

EWN