Gabaraane is new Stanbic boss

WANETSHA MOSINYI
Staff Writer | Thursday September 4, 2008 00:00

Information reaching Mmegi is that Gabaraane took the reigns at Stanbic Bank on August 1, but the bank has yet to make the announcement because it may not precede the formality of regulatory approval. The man in the news himself declined comment last week.

When the formality has been observed, Gabaraane will be taking over from Dennis Kennedy, who will now head Standard Bank subsidiaries in southern Africa.

Gabaraane will become the second Motswana to head a local commercial bank after serving as Stanbic Deputy MD since September last year. Mmegi can also reveal that the Deputy MD post will fall away as it was created especially for Gabaraane in preparation for eventual take-over at the topmost position.

In accordance with Section 29 of the Banking Act (Cap 46:04), all appointments to the position of a principal officer by any licensed bank are subject to meeting the 'fit and proper' criteria administered by the Bank of Botswana (BoB). 

BoB said on Tuesday that this process (approving Gabaraane's appointment) is currently underway. 'The decision on the matter is expected in the near future,' said BoB Public Relations Officer, Chepete Chepete.

During the announcement of Gabaraane as the new Deputy MD last year, Kennedy said the Bank had seen potential in him after he had successfully built Stanbic Investment Management Services (SIMS) to the level of being one of the largest asset management companies in Botswana. Gabaraane is the founding CEO of SIMS.

Gabaraane holds an MBA in International Banking and Finance from the University of Birmingham (UK) and a B.Comm from the University of Botswana (UB). He was once a Principal Operations Officer at the Botswana Development Corporation (BDC).

His departure from SIMS is seen as a bold move aimed at localising senior positions at Stanbic. He was succeeded at SIMS by another Motswana, Leonard Siwawa.

Botswana commercial banks have come under scrutiny for 'make-believe' localisation programmes.

Analysts have questioned why banks, which have a longer presence in Botswana, are failing to localise, whereas young Batswana head asset management companies which handle billions of pula's worth of assets.

Of all Botswana's seven commercial banks - Barclays, Standard Chartered, Stanbic, First National, Bank of Baroda, Bank Gaborone and Capital Bank - only Barclays has a Motswana MD.

Chepete said if Gabaraane's appointment is approved and he becomes the second Motswana to head a local commercial bank, it would be a positive and welcome development. But he noted that chief executive officers of Botswana's quasi-government banks, such as the National Development Bank, the Botswana Savings Bank and the Botswana Building Society, are Batswana.

The Governor of the BoB Linah Mohohlo, has on many occasions emphasised her desire for the localisation of decision-making within the domestic banking industry.

During the launch of Government's P5 billion bond programme, whose underwriters were Stanbic Bank, Mohohlo voiced her disappointment at the involvement of Standard Bank South Africa while there were capable Batswana. 

Even though Capital Bank is the only commercial bank in the country to have been established with citizen shareholders, Mohohlo still had a word of caution about citizen participation in key decisions at the launch of the bank earlier this year.