The Monocle Banking Podcast

After a year of operations in South Africa, Michael Avery was re-joined by Sabihah Mohamed, CEO of The Corporation for Deposit Insurance (CODI), for an insider's perspective on the nation's deposit protection framework. They delved into the organisation's first year, exploring the challenges and successes in raising awareness, and the proactive steps being taken to safeguard depositors' funds and maintain a stable banking environment.

This week, Michael Avery was joined by CEO of Huge Group, James Herbst. They delved into the strategic evolution of Huge Group, a South African investment firm that started as a traditional telecom player and is now positioning itself as a digital investment powerhouse. James unpacked the company's journey, including the acquisition of Virgin Mobile and the launch of NXTGN, revealing their unique approach to building a digital ecosystem in a challenging market.

In today’s complex dealmaking landscape, transactional risk insurance is emerging as a strategic advantage rather than just a safety net. In this episode, Michael Avery was joined by Nirav Modi, Marsh’s Private Equity and M&A Services Practice Leader for the Middle East and Africa. They explored how insurance solutions have expanded beyond traditional uses to bridge valuation gaps, instil confidence, and reshape investment narratives—particularly in emerging markets like Africa, where outdated risk perceptions have often hindered investment.

Despite a challenging economic backdrop in South Africa, the country's major banks again displayed impressive resilience in FY2024. This week, Michael Avery sat down with PwC Africa experts Rivaan Roopnarain, Banking and Capital Markets Partner, and Francois Prinsloo, Banking and Capital Markets Leader, who highlighted that the banks' performance stemmed from balance sheet growth, rising income, and pan-African contributions, alongside improved returns and asset quality. Looking ahead, the experts discussed the banks' ongoing strategic focus on technology investment, skills development, ESG, and sustainable finance integration.

Having navigated the global financial crises, political challenges in South Africa, and the impacts of the COVID-19 pandemic, Anthonie de Beer, CEO of Ethos Capital, joined Michael Avery to share his industry insights, drawing on over two decades of experience in private equity. The conversation emphasised the importance of strategic decision-making, managing high-stake investments, and leveraging collective team wisdom during volatile times. Anthonie also explored the current opportunities for private equity in South Africa, noting the scarcity of foreign capital and favourable asset valuations, even though accessing capital remains a key challenge.

This week, Michael Avery was joined by business restructuring experts Siviwe Dongwana, Managing Director, and Bongani Nkasana, Executive Director at Adamantem, as well as Fikile Mhlontlo, CFO at Delta Property Fund, to offer crucial advice for CFOs. Their message is clear: prioritise a comprehensive business health check to proactively address potential financial risks.

Drawing on insights from the South African Airways case study, they underscore the significance of timely intervention in financial distress for successful turnarounds. The episode also delved into the expanding role of CFOs as strategic partners and the impact of strong board leadership on facilitating early action.

To dive into the current state of global fintech market, Michael Avery was joined by Auguste Claude-Nguetsop, Partner at KPMG, to explore insights from the KPMG Pulse of Fintech report. They discussed the drivers behind the investment slowdown, misconceptions foreign investors have about African markets, and the regulatory challenges Fintechs face, particularly in South Africa. The conversation also touched on the cautious adoption of AI in fintech, the impact of US disruptions on global markets, and offered advice for tech founders on building strong ecosystems and preparing for future funding shifts.

As many municipalities across the country struggle to deliver basic services, Michael Avery sat down with Musa Jack, Programme Manager for Anglo American’s Municipal Capability and Partnership Programme (MCPP).  They discussed the programme’s efforts to strengthen municipal capacity, support long-term planning, and address systemic challenges facing local government. Musa also highlighted the importance of collaboration between the private sector and government to help municipalities become self-sustaining, deliver reliable services, and drive economic growth.

Although cash remains king in South Africa, digital payments are rapidly gaining traction. In this episode, Michael Avery sat down with Katlego Maphai, the Co-founder and CEO of Yoco, a leading payments powerhouse in South Africa, to explore the evolving payments landscape in the country. They discussed how fintech payment solutions are playing a crucial role in breaking down barriers to financial inclusion, offering greater visibility into the economy, and fostering a competitive and growing financial services market.

Following the postponement of South Africa's budget speech, Michael Avery spoke with Daan Steenkamp, CEO of Codera Analytics, about the country's economic future. They discussed key issues, including persistent deficits, rising public sector wages, and the IMF's warnings about escalating national debt. Daan also emphasised that achieving fiscal sustainability requires comprehensive reforms to unlock the private sector's potential and improve public administration.