Absa Group Ltd. today announced the appointment of three Group executives, with effect 1 January 2023, signalling further progress in its ambition to create a winning, talented and diverse team.

“The appointments build on the positive momentum that was achieved through Executive Committee changes and operating model refinement earlier this year,” said Absa Group Chief Executive Officer, Arrie Rautenbach. “The appointments strengthen our leadership team, adding to the bench of skill, experience and diversity appropriate to, and supportive of our ambition to be a leading Pan-African bank,” he said.

The appointments include:

Jeanett Modise, Absa Group Chief People Officer

Jeanett is an accomplished human resources (HR) professional with extensive experience at executive level, driving HR strategy, operations, turnaround and digital transformation in local and global organisations. Jeanett has worked with executive teams and boards for more than 20 years and has held several Board positions.

Johnson Idesoh, Absa Group Chief Information and Technology Officer

Johnson has 25 years of experience in leading digitalisation in regulated industries and a proven track record in delivering and embedding digital strategies that improve customer experience and increase digital customer numbers.

Sydney Mbhele, Absa Group Chief Brand, Marketing and Corporate Affairs Officer

Sydney has a 25-year career in the brand-building and marketing sector, working at blue-chip companies. He was nominated as 2022 marketer of the year (South Africa) and rated as a top five Chief Marketing Officer in Africa and the Middle East in 2021.

All three executives have significant experience, having operated across multiple markets on the continent and elsewhere.

“We have made significant progress in delivering on our strategic agenda and in strengthening leadership and organisational capability this year,” said Rautenbach. “We are well positioned for commercial outperformance going forward.”

The seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose firmly back into expansionary terrain in November. The index rose to 52.6 points, up from 50 in October and an average level of 49.6 recorded in the third quarter. On its own, this suggests that the manufacturing sector could book another slight expansion in the fourth quarter. However, next week’s official data on factory production in October – and the extent to which this was impacted by the prolonged strike at Transnet – will help to firm up this view.

Encouragingly, both business activity and new sales orders improved for a second straight month after both had plunged lower during the load-shedding-heavy month of September. New sales order volumes expanded for the first time since May 2022. Even though it improved, the activity index remained stuck just below 50 points, while the employment index also lingered at a much lower level. As cautioned in the past, higher demand and output levels would likely need to be sustained for some time for any improvement in staffing levels to occur. Encouragingly, purchasing managers turned more upbeat about business conditions going forward. The index tracking expected business conditions in six months’ time rose to 51.7 from 49.2 in October.

The purchasing price index remained largely unchanged in November. This would correspond to price pressure at the start of the production process remaining elevated, but less intense than at the beginning of the year. The recent decline in the Brent crude oil price as well as a somewhat stronger rand exchange rate (against the US dollar) bode well for the general downward trend to continue through the final month of the year. Still, with load-shedding expected to continue, the (more) frequent usage of diesel-powered generators adds to the cost burden of producers.

Please note: December 2022 PMI will be released on 6 January 2023.

Sanlam and Absa are pleased to announce that all suspensive conditions have been successfully met, allowing implementation today (1 December 2022) of a transaction that combines their investment management businesses in South Africa.

The transaction sees Absa exchanging its investment management business, Absa Investments, for a stake in Sanlam Investment Holdings Proprietary Limited (SIH). Absa Investments comprises Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.

The conclusion of the transaction significantly strengthens SIH’s offering through enhanced scale, broader distribution reach and a more holistic range of investment solutions. This further enhances SIH’s position as one of South Africa’s largest black-owned asset managers.

Absa has also entered into a 10-year distribution agreement with SIH, meaning the expanded operations will utilise the distribution networks of both Sanlam and Absa, which significantly broadens market reach for the enlarged SIH.

Sanlam Investment Group CEO, Mr Carl Roothman, said: “We are excited that the agreement to integrate the investment management businesses of Sanlam and Absa has been concluded. Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations.”

“Scale is critical in driving the product and service innovation required to meet clients’ financial goals. Combined capabilities, expertise and commitment to our clients will position us to be the preferred investment solutions provider in South Africa. Our promise is to serve our customers with pride and deliver world-class client experience and solutions,” Mr Roothman said.

Commenting on the transaction, Absa Group Financial Director, Mr Jason Quinn, said: “We are delighted with the successful conclusion of the transaction, which delivers the scale, capabilities and transformation which we view as essential to achieving strong and sustainable growth. Absa remains committed to the investment management sector through its shareholding in the combined entity and a 10-year distribution agreement, which will help us to offer an enhanced customer value proposition by creating a deeper, broader range of investment solutions for our clients.”

Upcoming product enhancements, including free Absa Rewards, and 2023 pricing revisions aimed at rewarding Absa’s best customers with significantly enhanced value.

Building on Absa’s half a billion rand pricing relief efforts last year, including below inflationary increases throughout the Covid-19 pandemic, the bank is intensifying support for loyal consumers with a further R500 million price reduction across Everyday Banking product offerings in 2023.

From 1 January 2023, the bank’s new-look pricing comes into effect, providing primary banked* customers with superb value for money while staying true to Absa’s commitment of addressing customer pain points. Wide-ranging enhancements to its pricing and fee structure and investments in key, market defining proposition refreshes throughout 2023 will offer unrivalled value.

Notably, Absa Rewards will now be free with more exciting enhancements on the horizon for primary banked customers including a new VIP Rewards programme. Headline changes in the latest pricing overhaul include more than R260 million in customer savings on Absa Rewards, and R230 million pricing relief for Flexi Account customers, with up to 90% reductions in key day-to-day digital transaction fees.

There will be no increases to monthly fees on Absa Transact, the cheapest account in the market** and fees for Digital Payments and External Debit Orders are slashed by 90% for Youth customers. Gold Value Bundle and Premium Banking customers will now benefit from free CashSend transactions as part of their monthly cash bundles keeping in line with the shift in consumer behaviour to digital banking.

“Remaining relevant to the rapidly changing needs of our customers and driving primacy is our highest priority. Absa’s latest pricing overhaul, and the positive progress we have made with previous pricing relief efforts is aimed at heavily rewarding our primary banked customers for their support. The raft of changes and impending product refreshes will provide best in class value. In essence, the more customers use Absa, the more they save,” says Christine Wu, Managing Executive: Consumer Product, Absa Everyday Banking.

Monthly fees on our credit cards remain unchanged for 2023 and customers who choose one of our market leading bundles can benefit from zero credit card monthly fees.  Gold and Premium transactional package monthly fees have been marginally increased for the first time in three years and cash-handling fees will see adjustments reflective of the high cost and risk associated with cash.

“Rewarding our loyal, primary-banked customers is at the heart of Absa’s pricing philosophy. This review lays the groundwork for wide-ranging product refreshes in 2023, which include a selection of new transactional packages and exciting personalised offers through our VIP programme. These market defining enhancements are based on fundamental shifts in transactional and banking behaviour noted over the past few years, and crucial insights gained from Absa’s previous pricing relief efforts,” Wu adds.

As a full-service bank, Absa offers the convenience of a digital bank backed by the benefit of the human touch through our extensive branch and frontline network. We are ready to assist,” says Wu.

As part of Absa’s 2023 pricing review, specific highlights include:

• Absa Rewards Now Free for Everyone
  • The Absa Rewards monthly fee of R23.20 has been waived, making it free for all Absa Rewards customers.
  • There will be some new and exciting enhancements to the programme in early 2023 for primary banked customers, who will receive superior value from Absa Rewards.
  • Dedicated Rewards Hub and new VIP programme to be launched in 2023 with a refreshed set of benefits to our customers.

• Youth and Students Continue to Bank for Free
  • Absa Student and youth accounts still carry zero monthly fees and continue to benefit from free embedded benefits such as 100mb free data per month and free vouchers.
  • In addition to unlimited free Absa ATM Cash withdrawals, Mega U customers to bank digitally with Absa will further benefit from 90% cheaper Digital Payments and External Debit Orders.

• No Monthly Fee Increases for Absa Transact
  • Absa Transact customers continue to benefit from R5 000 free lump-sum death benefit and with zero monthly fee increases in 2023.
  • Whilst ATM cash withdrawal fees will increase, customers have the benefit of unlimited free card-swipes, till-point withdrawals and rock bottom R1.00 per transaction digital payments and debit orders.

• Major Relief for Flexi Account customers
  • Flexi Account customers will benefit from the following price reductions:
    • Till-point withdrawals – Now free (Previously R2.00)
    • Debit Card Swipes – R1.00 per transaction (Previously R4.00)
    • Digital Payments – R1.00 per transaction (Previously R10.00)
    • External Debit Orders – R3.50 per transaction (Previously R10.00)
  • Monthly fees will increase to R40.00 pm but customers still get unrivalled value with free R15 000 lump-sum death benefit included as part of their monthly fee worth over R90.00pm.

• Digital Enhancements to Gold and Premium Bundles
  • To ensure we remain relevant to our evolving customers’ needs as they shift to digital banking, we now include cash-send in our Gold and Premium monthly free cash limits which will be R4 000 and R5 000 respectively.
  • Both offers continue to benefit from unlimited free digital transactions including card swipes, till-point withdrawals, debit orders, digital payments and transfers.
  • Gold and Premium Monthly fees will increase to R115 pm and R200 pm respectively (First time in three years).
  • Gold and Premium customers will continue to benefit from up to R25 000 free lump-sum death benefit.
  • Customers who seek to apply for an overdraft will now benefit with a flat R175 initiation fee.

* Primary banked customers are classified as those who have their salaries deposited into their transactional account.

** According to the Solidarity Banking Report 2022 Absa Transact is the cheapest account in South Africa.

Absa funds the first Renewable Energy Projects to reach Financial Close in Bid Window 5 of the South African REIPP Programme

Johannesburg, 14 November 2022–Absa acted as the joint mandated lead arranger and lender for two of EDF  Renewables’ renewable  energy  projects  which  reached  financial  close  on 10 November  2022.The  projects  comprise two 140MW  wind  farms which  will be located in the Northern Cape and developed at a total estimated capital cost of R7.7billion.

These two projects will be the first of three projects by EDF Renewables to reach financial close under the 5th bid window of the South African Renewable Independent Power Producer (REIPP) programme. EDF Renewables’ third  project  under  Bid  Window  5 is expected  to  close  soon, bringing the total project capital cost to an estimated R11.5 billion.

These projects are being developed by EDF Renewables as the lead sponsor together with Gibb Crede Wind  Farm  Investments  and  H1  Holdings. The  total  project size for  the  three  projects combined will be 420MW(3 x 140MW each).The power generated will be supplied to Eskom under a 20-year power purchase agreement.

“Absa continues to support the South African renewable energy programme, having now financed over 3.5GW’s of projects since the inception  of  the  programme more  than  a  decade  ago. This transaction strongly demonstrates our ongoing commitment to financing clean energy projects and the acceleration of investments that make a sustainable impact on the communities we serve,” says Shaun Moodley, Principal within Absa’s Resource & Project Finance team.

The  financing  of  projects in  this sector is  in  line  with Absa’s sustainable  finance  goals, which include helping our clients on their journeys to become sustainable and also assisting Eskom with transitioning  from  fossil  fuels  to  renewable  energy  sources,  thereby  significantly  reducing greenhouse gas emissions in South Africa. The REIPP programme is critical in helping Eskom to add renewable power generation capacity to the grid in line with the country’s energy transition objectives and sustainable development goals,” says Moodley.

EDF Renewables is a locally based, fully integrated independent power producer that develops, finances,  builds,  owns  and  operates  commercial  renewable  energy  generation  facilities. It’s a subsidiary  of EDF  Renewables, the  renewable  energy  arm  of  global  utility  EDF,  whose expertise include wind, solar PV, battery storage and hybrid solutions.

The EDF Group is a lead in utility and one of the biggest power producers in the world with a total installed generation capacity of 122 GW .EDF Renewables South Africa has contributed four wind farms to the South African (REIPP) programme already and Absa is privileged to lead these two projects to close, contributing 280MW to the grid.

On behalf of Absa Bank Limited (the “Borrower” or “Absa” or the “Bank”), Bank of America Europe Designated Activity Company, Industrial and Commercial Bank of China Limited, London Branch, SMBC Bank International plc and Standard Chartered Bank (together the “Bookrunners” and “Coordinators”) are pleased to announce the launch of a $300m Term Loan facility (the “Facility”).

The Facility has an initial tenor of two years, subject to an extension option available at the Borrower’s discretion to extend the maturity by a further one-year at the end of the initial two-year tenor. Theproceeds of the Facility will be used for general corporate purposes including, but not limited to trade related finance. The Borrower may elect to upsize the Facility in the event of an oversubscription in syndication.

The Borrower
Absa Group Limited was founded in 1991 in Johannesburg South Africa. In 2005, Barclays acquired a majority (56.4%) stake in the group, eventually renaming the group to Barclays Africa in 2013. Barclays Bank divested its majority shareholding in 2018 and Barclays Africa Group Limited was officially renamed Absa Group Limited (“Absa Group”) where it started trading under its new name on the Johannesburg Stock Exchange. The Absa Group is one of Africa’s largest financial services providers with a presence in 12 African countries, as well as the UK. Absa Bank Limited is a 100% owned subsidiary of the Absa Group.

Absa Bank Limited (rated Ba2 by Moody’s) is incorporated and domiciled in South Africa and provides retail, business, corporate, investment banking, and wealth management products and services. The Borrower is one of South Africa’s largest financial services organisations, serving retail, business and corporate customers and clients in South Africa. The Borrower and its subsidiaries operate primarily in South Africa and employ 35 267 people. As at 31st December 2021, the Bank’s full year results reflected a total income of ZAR 85.8bn with headline earnings of ZAR 18.6bn. Total assets were ZAR 1,637bn of which ZAR 1,017bn were loans and advances to customers.

Absa is proud to extend an invitation to the public to the upcoming Absa L’Atelier 2021 Ambassadors joint exhibition. The exhibition, supported by the theme ‘Refuge: An uncommon home’, will be hosted by Absa from 17 November 2022 until 27 January 2023.

This collaborative exhibition will showcase recently produced artworks by the 2021 Absa L’Atelier Ambassadors Dr Adelheid Frackiewicz from South Africa, Ayobola Kekere-Ekun from Nigeria, and Michael Blebo from Ghana – before travelling to each of the winner’s respective countries in 2023.

Through their art, these three artists undertook a journey of self-reflection, during which their art-making process allowed them to reflect on their personal trauma, addressing their fear of what was and what might be, while giving them the strength to face their anxiety about the unknown.

Using a combination of found objects and traditional art materials, the production of their eventual artworks has been a delicate yet challenging process, allowing each artist an opportunity of find refuge and tranquillity in their own space.

Absa Senior Specialist Art Curator, Dr Paul Bayliss, says they chose the theme as it empowers the creation of artwork through either painting, sculpture and/or installation, which involves processes that allow the artist to think and work through their anxieties regarding trauma.

“These anxieties stem from a lost childhood due to trauma, a fear that something could happen or due to intergenerational anxiety passed down. It is through reimagining their home, which is not only a physical space of materiality, that it becomes a refuge from what was,” he says.

The artworks in the exhibition combine painting, sculpture and installation; artworks that explore the element of form, space, and time, presenting the audience with a shifting perspective on materiality.

“This exhibition is in line with our ethos of making possibilities come to life for visual artists and we are using this to launch new works by our 2021 Absa L’Atelier Ambassadors. In addition to this collaborative exhibition by these three young talented artists, each artist will, within the next five years, be taking up a solo exhibition in the Absa Gallery,” he adds.

Refuge: An uncommon home will launch on the Absa Art Hot Spot on Thursday 17 November and will be open for public viewing at the Absa Gallery in Johannesburg from Friday 18 November 2022 and run until 27 January 2023.

The 2023 competition is open for entries from 1 April to 31 May 2023. For inspiration and further information visit the Absa L’Atelier website.