How Nyambirai bounced back at Steward Bank, taking control in EcoCash Holdings shake – up …. Promises to empower affected bank employees

Tawanda Nyambirai, the architect behind Steward Bank’s success, has engineered a remarkable return, reclaiming ownership of the institution he once built.

This dramatic move comes after a significant restructuring of EcoCash Holdings Zimbabwe Limited (EHZL)’s shareholding, culminating in Nyambirai assuming control of the bank he founded.

He now also serves as group chief executive officer of EHZL.

Nyambirai’s connection to Steward Bank began with its transformation from TN Bank, which he also led. Following the sale of TN Bank to Econet Wireless in 2012, Nyambirai’s association with the bank continued through his leadership of TN Asset Management (TNAM).

He explained the complex series of events that led to his return and ultimate acquisition.

“I developed TNAM to be the second largest asset manager in Zimbabwe after Old Mutual, by Funds under Management,” he said. “As TNAM, we were the underwriters of the EcoCash Holdings Zimbabwe Limited Rights Offer last year.”

This underwriting, he explained, led to TNAM acquiring a 25 percent shareholding in the bank holding company after the transfer of fintech assets, including EcoCash, to Econet.

He noted that Econet’s strategic focus had shifted towards fintech, creating an opening for him.

“Therefore, there was an opportunity to increase my stake beyond 25 percent,” Nyambirai stated. “I was always sentimentally attached to the bank as its founder. I had the capacity to increase my shareholding. So, I took the opportunity.”

Crucial to Nyambirai’s plan were recent shareholder changes at EHZL. He now controls over 50 percent of the bank holding company, with 25 percent subject to regulatory approval from the Reserve Bank of Zimbabwe. He outlined the new shareholder structure: “The top seven shareholders of the Bank Holding Company are as follows: 1 TN Asset Management Nominees 53.261 percent, 2 Econet Wireless Zimbabwe Limited 12.351 percent, 3 Econet Global Limited 9.01 percent, 4 Stanbic Nominees (private) Limited (NNR) 3.519 percent, 5 Stanbic Nominees (private) Limited 3.41 percent, 6 Old Mutual Life Assurance Company of Zimbabwe Limited 3.037 percent, 7 Econet Wireless Zimbabwe SPV Limited 2.47 percent.”

This significant shift in ownership prompted a board restructuring, with several directors resigning, including chairperson Sherree Gladys Shereni. Dr. Titus Murefu has been appointed the new chairman.

Nyambirai’s appointment as Group CEO solidifies his control and signals a renewed focus on his vision for the institution.

His return comes at a critical juncture for both the Zimbabwean economy and EHZL. Analysts suggest that his extensive experience in building and scaling financial institutions will be invaluable in navigating the current economic complexities.

Nyambirai’s vision involves transforming the bank into a “CyberTech banking group.”

He described a future where “the traditional branch will be replaced by a banking kiosk from which customers will transact using computers, smart phones and iPads and ATMs. Picture the set up in modern phone shops that you find abroad. Then you will get the picture I am trying to paint.”

He also plans to enhance the online banking platform to allow for automatic account opening and emphasized a renewed focus on customer service, guided by the values of Innovare, Dignitas, Industria, Fides, Originalis and Humilitas (IDIFOH).

Reflecting on his past decisions, Nyambirai said: “Selling the bank was one of my best decisions ever and buying it back is a good decision.”

He emphasised the importance of making “good timely data driven decisions, even if the decisions seem to go against the grain,” and added, “I have learnt never to allow my detractors to define me.”

He acknowledged the regulatory hurdles in Zimbabwe’s financial sector, citing “an ever-shifting regulatory environment” and the impact of sanctions.

“The biggest risk in the Zimbabwean financial services sector is regulatory,” he asserted. However, he sees opportunities in technology. “If we innovate enough and quickly enough, we may still become a great bank,” he stated.

Addressing stakeholders directly, Nyambirai acknowledged the need for workforce adjustments.

“The bank is over employed. We must right size,” he said.

However, he pledged to explore all options to save jobs before resorting to retrenchments.

He plans to establish a private equity/venture capital fund to support retrenched employees in becoming entrepreneurs.

“The message to employees is that retrenchments are coming. But they will come with a silver lining. This will be a chance of a lifetime to become a well-capitalised entrepreneur,” he said.

He also assured shareholders of his commitment to strong returns.

“I will ensure delivery of a good return to the shareholders,” he stated.

Nyambirai’s view of financial inclusion extends beyond simply opening bank accounts.

“To be meaningful, financial inclusion must empower citizens with resources that they can use to conduct trade and commerce,” he explained.

He emphasised the importance of lending to productive sectors of the economy to create jobs and empower citizens. He confirmed that his plans encompass both short-term and long-term goals.-bsinessweekl