Absa has partnered with Tshimong Media to produce “The Interchange”, a podcast series on Cliff Central which aims to stimulate critical thinking skills among young South Africans through the power of debate.

Tsihimong Media is a social enterprise that creates debating, public speaking and leadership training programmes for scholars and students.

Vuca, the acronym for volatility, uncertainty, complexity and ambiguity first used during the Cold War but now a trendy managerial concept – has become the new normal in the workplace. “During times of disruption such as those we are currently experiencing, we tend to go back to places that reinforce our set ideas, making it difficult for us to deal with the future. Vuca demands reframing, and more importantly, critical thinking skills,” says Sazini Mojapelo, Absa Head of Citizenship and Community Investments.

“Just as it’s impossible to learn how to surf without getting on a board, it’s impossible to master critical thinking skills unless you experience the need to use them. We have made a clear commitment to our continent and its young people. The youth are the most socially active segment on the African continent; from the Arab Spring erupting in Tunisia and Egypt to the #FeesMustFall movement in South Africa – young people prove every day that they matter.”

The World Economic Forum’s 2016 report, “The Future of Jobs”, predicted the Fourth Industrial Revolution would cause widespread disruption, not only changing business models but also labour markets over the next five years, with changes predicted in the skill sets needed to thrive in the new landscape.

Less than five years later, these developments have already transformed the way we live and work. Some jobs are disappearing, while others have grown and jobs that don’t even exist today will become commonplace tomorrow.

“The future workforce needs to align its skillset to keep pace. Employers increasingly recognise what is needed in graduates is not so much technical knowledge, but applied skills, especially skills in critical thinking,” says Mojapelo.

“The Interchange is a debate show in the format of a podcast series that gives a platform for young people to engage on issues that affect society. It will be presented by Tshimong Director Busi Mkhumbuzi, an activist and entrepreneur who inspired the nation when she hosted former US President Barack Obama when he delivered his Nelson Mandela Lecture last year,” says Thami Pooe,  Chief Executive of Tshimong Media.

The Interchange uses the World School Debate format with two teams, one proposing and the other opposing. “This format is a powerful way to seek out unheard voices, new perspectives from young people, and untold angles related to the most compelling issues of the day,” says Pooe.

For the first time, young people who are passionate about shaping a new South Africa, and African continent, will have a platform to make themselves heard and use their voices to drive a positive agenda.

“Our priority is to play our role in putting the basic building blocks in place to ensure young Africans have the opportunity to reimagine their futures and turn their possibility into action,” says Mojapelo.

The first podcast was released on Cliff Central’s podcast platform on June 20 on Cliff Central

The podcast series will be shared on social media platforms:

• Twitter: @TshimongSA, @CliffCentralCom, @AbsaSouthAfrica, @Absa;
• Facebook: Tshimong, CliffCentral, Absa South Africa;
• Instagram: tshimongsa, CliffCentral, absa;
• Linkedin: Tshimong, CliffCentral.com, Absa Group.

Absa Group was recognised in the “Africa’s Best Transformation” category at the prestigious Euromoney Awards for Excellence 2019 that was held at a ceremony in London last night.

The award recognises a bank in each region that has made the most positive changes over the last 12 months and fundamentally transformed its business model or offering to clients in the period under review. The bank should also have demonstrated that this transformation is now paying dividends in terms of business performance.

Absa CEO René van Wyk said the company was honoured to receive the award. “Today marks exactly a year since we launched our new brand to the market. The award recognises the work we have done and continue to do to completely re-engineer the business, making it more agile and digital to respond to dynamic client needs. This journey continues, but we are humbled by the recognition for the work we have done so far.”

The Euromoney recognition also underlines how, after its first year as a standalone African bank, the Absa brand has grown into its bold and passionate personality. “The name change marked the start of a new era for the group; it was an extraordinary milestone that set us firmly on course to become the financial partner of choice on the continent,” says van Wyk.

Barclays Africa Group announced in March 2018 that the company will be renamed Absa Group Limited and that it intended to operate as Absa across its operations in Africa by 2020.

Free to pursue its own path as a standalone company, the group set out a new corporate strategy, resulting in a new business purpose statement that positioned the bank as enabler, helping individuals, businesses and society to ‘bring their possibility to life’.

It also resulted in the creation of a refreshed brand as an expression of the bank’s new promise and identity. Whereas Absa previously represented mainly a South African bank, the new brand was fit for a future-focused African bank in the digital age, and now represents a group of banks across multiple countries in Africa, with an international office in London and another planned for the US.

The brand refresh opened a new chapter in Absa’s long legacy of serving African citizens for more than 100 years and gave the bank the opportunity to shape their own destiny as a proudly African bank with global scalability.

The refreshed brand was unveiled in South Africa in July last year and the rebranding of the group’s Barclays-branded subsidiary companies in countries outside of South Africa as well as most other subsidiaries will commence later this year.

Absa Group Ltd., one of the largest financial services providers in Africa, told investors yesterday that its programme to separate from Barclays PLC is 69% complete, with 184 of the 266 projects having been successfully delivered, two years into the three-year programme.

The separation comprises the gradual replacement of services, primarily involving operational and information technology, provided to Absa by Barclays PLC, which reduced its shareholding in the African financial services group to a minority stake in 2017. The separation also includes transitioning from the Barclays brand to ‘Absa’ in 12 countries, a process that is underway with South Africa having been completed during 2018.

“Very few programmes of this level of complexity are being undertaken in the financial services industry today,” said Paul O’Flaherty, Chief Executive: Engineering Services, at Absa Group. “We have passed several milestones, but there are hard yards still to come,” he said. The successful migration of core banking platforms in African regional operations in April and digital channels in African regional operations in May are significant recent milestones, he said.

The 266 projects in the separation programme have an average 18-month duration and several run concurrently. More than 1,000 Absa employees and about 800 contractors are working to deliver the separation.

The separation presents a strategic and operational opportunity to effect improvements with half of the systems being replaced being transformational in nature and the other half being a hybrid of refreshed systems with transformational elements.

Barclays PLC made a R12.6 billion contribution towards the separation programme in 2017. Of this figure, R8.5 billion has been spent to date.

While capital expenditure will peak in the current calendar year, the separation programme is running on time and within budget.

The seasonally adjusted Absa Purchasing Managers’ Index (PMI) erased most of last month’s gain and fell to 45.4 index points in May from 47.2 points in April. Barring a drop to 45 points in March, this is the weakest level since October 2018.

The decline brought the average PMI for the first two months of the second quarter to 46.3 points, which is below the first quarter average of 47.1 points. This does not bode well for a recovery in activity in the manufacturing sector after output declined notably on a quarter-on-quarter basis in the first quarter.

Three of the major subcomponents declined when compared with April, while the suppliers’ deliveries and employment indices rose. The index tracking suppliers’ performance remains the only main subcomponent that is above the neutral 50-point mark. Indeed, despite improving somewhat in May, the employment index stayed well below the neutral mark at 43.2 points.

The new sales orders index dipped lower in May after an encouraging improvement in April, falling to 44.4 points. The PMI indicates that export orders remained positive, which suggests that the downturn came from weaker domestic demand. The deterioration in orders most likely contributed to a sharp drop in business activity. The inventories index also weighed on the headline PMI, as the index fell further following a steep decline in April. This sub index fell to 41.6 points in May, and is currently more than 11 points below a recent high, which was reached three months earlier.

The index tracking expected business conditions in six months’ time remained unchanged at 62.3 index points. This is more than 4 points above the average recorded during 2018, which means that respondents remain fairly optimistic that conditions will improve going forward.

Somewhat surprisingly, the purchasing price index declined further in May. Whereas factory-gate price inflation, as measured by the Producer Price Index (PPI), has increased of late, the PMI price index is currently at the lowest level in a year. It is not immediately clear what is driving the difference. However, the PMI might reflect the general lack of price pressure in the South African economy as firms absorb rising input costs to protect sales volumes.

• PMI Infographic May 2019

Societe Generale, a leading European bank with operations in 19 African countries, and Absa Group Limited (“Absa”), a leading financial services group in Africa with presence in 12 countries, announced in January a commercial agreement on a combined wholesale banking offer to better serve their clients in their financial needs across the African continent.

This agreement includes notably a combined offering dedicated to Chinese companies operating in Africa which would allow them to benefit from an expanded geographical reach with complementary banking products and services including dedicated China business desks in key African countries.

Through the commercial agreement and with the objective to help Chinese clients in their development in Africa, Societe Generale and Absa aim to provide a unique, truly pan-African wholesale banking offering, leveraging on both banks’ geographical complementarity and wholesale banking expertise including cross-border business risk management.

In this context, Societe Generale and Absa co-hosted today a first corporate forum in Beijing with Chinese clients to discuss on the business environment in Africa, their banking needs in the continent and the combined offering through the Memorandum of Understanding signed between the two banks. Pierre-Yves Bonnet, Group Country Head and Chairman for Societe Generale China, Yann De Nanteuil, Deputy Head of Africa for Societe Generale and Anand Naidoo, Managing Executive of Client Coverage at Absa, hosted the event along with financial experts and economists who draw an overview of the opportunities and challenges in Africa facing Chinese corporates.

Yann De Nanteuil, Deputy Head of Africa and Overseas for Societe Generale, comments: “Societe Generale is delighted with the success of this first event with Absa dedicated to Chinese corporates. By leveraging on our Group’s expertise in providing a wide range of banking solutions in Africa including corporate and investment solutions, we are convinced this joint offering will allow us to better service Chinese corporate clients in expanding their business across the African continent.”

“Over 2019-2023, half of the world’s ten fastest growing economies are projected to be African. In fact the continent actually represented the second fasted growing economy globally over the preceding 5, 10 and 20 years. The impressive investment returns in Africa require Chinese corporate to partner with trusted adviser in the region to help manage the complexity and risks associated. We are committed to arming our clients with local expertise and global experience to capitalize on the opportunities presented in the continent.” added Anand Naidoo, Managing Executive of Client Coverage in Absa.

Under the guidance of the Belt and Road Initiative (BRI), China and African countries continue to strengthen their cooperation. In the Belt and Road Forum for International Cooperation in 2019, China and Africa have established a comprehensive framework for the development of BRI to meet the rising demand of financing and risk management needs. The flourishing development of BRI is fully aligned with the common commitment of Societe Generale and Absa to design and provide corporates with diverse wholesale banking offerings such as export finance, infrastructure financing advisory and capabilities or trade and cash management solutions.

Pierre-Yves Bonnet, Group Country Head and Chairman for Societe Generale China, said: “Thirty-Seven African countries and the African Union Commission have signed the BRI cooperation agreement with China, outnumbering the Asian countries that did so last year. With its long presence in Africa, Societe Generale is pleased to offer corporate clients a wider range of banking offerings under the commercial agreement with Absa to address increasingly sophisticated banking needs of Chinese companies.”

Since establishing the first presence in Africa in 1911, Societe Generale has been contributing to the sustainable development of Africa. Early in 2014, Societe Generale in China launched the “Africa Express” program, leveraging the Group’s global network to help Chinese enterprises grow in Africa. To date, Societe Generale’s network covers 19 countries, with about 1,000 retail branches, providing 150,000 corporate clients with trade and cash management services, investment banking solutions as well as risk hedging market solutions. Leveraging on its recognized know-how in structured finance and its long-term commitment for the sustainable development of Africa, the Group also supports its clients in their infrastructure financing needs, especially in energy, transport, water and waste management, and the development of sustainable cities.

Absa is one of Africa’s largest universal financial services group and a systemic important bank in 10 of the 12 presence markets. Its offering across the African continent includes a range of retail, business, corporate and investment, and wealth management solutions. With a history on the continent dating back over 100 years, Absa employs around 42,000 staffs across the continent.

Absa Group Limited today announced another successful migration project following on from the completion of the core banking system migration of six subsidiaries (Tanzania, Ghana, Botswana, Zambia, Mauritius and Seychelles) in April 2019. The latest project was undertaken during 18-19 May 2019 and it unlocks further benefits, including upgraded infrastructure and new customer interfaces in some instances.

Absa has now migrated its digital channels and its account origination applications used by ten African subsidiaries — Tanzania, Ghana, Botswana, Zambia, Mauritius, Seychelles, Uganda, Kenya, Mozambique and National Bank of Commerce in Tanzania (NBC) — from the Barclays PLC data centre in the United Kingdom to Absa’s data centre in South Africa.

The latest migration project unlocks a number of benefits for Absa, and ultimately for customers, including:

• Upgraded infrastructure will result in a more stable and scalable environment for our applications
• Enhanced monitoring of infrastructure and applications
• Mobile banking has a new user interface and the application has been revamped for Uganda, NBC and Mozambique
• The project transfers further knowledge from Barclays PLC team to local teams

“These projects were large and complex undertakings that required meticulous planning by highly skilled teams,” said Paul O’Flaherty, Chief Executive: Engineering Services at Absa Group Limited“. “We are proud to have executed them successfully, as part of our broader separation programme which will be completed in the next year.”

The seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose by 2.2 points to reach 47.2 index points in April. This was the first increase after three months of declines in the headline PMI. However, the PMI remains below the neutral 50-point mark and is more or less in line with the average recorded in the first quarter of 2019. This means that factory conditions stabilised at a fairly depressed level at the start of the second quarter.

The major subcomponents of the PMI paint a mixed picture of underlying conditions. Two of the indices improved compared to March, while three declined. Indeed, only the index tracking suppliers’ performance came in above the neutral 50-point mark at 53.4 points in April. The business activity and new sales orders indices recorded notable increases in April, but both remained in contractionary terrain. Some respondents reported an improvement in export orders which may have supported overall demand, providing a boost to output. In contrast, the inventories index slumped in April and fell to 42.5 points, which is more than ten points below a recent high reached in February. The employment index also moved lower to reach 41.9, which is 4.5 points below the average recorded during the first quarter.

Respondents turned slightly more optimistic about business conditions in six months’ time. The index tracking expectations rose to 62.3 points in April. The lack of load shedding during the month may have supported the slight improvement in sentiment.

The purchasing price index declined slightly compared to March. The deceleration in cost increases may have been supported by the slightly stronger rand exchange rate. Brent crude oil prices, however, rose during the month. Fortunately, the rise in international diesel prices was countered by the stronger rand, which means that the local diesel price remains unchanged in May.

• PMI Infographic April 2019

Statement regarding COMPETITION TRIBUNAL case

On 17 February 2017, the Competition Commission of South Africa announced that it had decided to refer several banks (foreign currency traders) to the Competition Tribunal for prosecution. While the list included Absa Bank, the Commission also stated that it would not be imposing a fine or any other sanction against Absa.

In March 2017 the former Chief Executive Officer of Absa, Maria Ramos, explained in her annual results speech that the two Absa employees implicated in the case had been suspended to face disciplinary action. “Those who contravened our rules will be held accountable,” she said at the time.

In Absa’s view, this is consistent with Absa’s values, and Ms Ramos insisted it was necessary for Absa to apologize even though there were only two employees involved. It was the right thing to do.

In recent times, there have been public statements by some public figures accusing Absa’s former CEO of having been involved in “manipulating the rand”, and calling for her prosecution. Such statements are untrue and misleading. The Competition Commission in its submission to the Competition Tribunal named the individuals implicated, and Ms Ramos was not one of them.

Instead, Ms Ramos ensured that Absa’s internal investigation was thorough and surfaced all the facts needed to approach the authorities and offer Absa’s assistance. This led to the Competition Commission’s own investigation. Absa continues to cooperate in full with the Competition Commission during the Competition Tribunal phase.

It is therefore untrue and misleading to suggest that Ms Ramos has not acted above board or that the authorities have taken no action in this matter.

While they involved foreign currency trading, the transgressions being prosecuted at the Competition Tribunal have never determined the Rand’s overall valuation as alleged in some statements.

The Competition Tribunal process is ongoing.

Absa Group successfully migrates subsidiaries’ banking platform from UK to South Africa

Absa Group Limited today announced that it has successfully migrated the banking platform used by six of its African subsidiaries – in Botswana, Ghana, Mauritius, Barclays Tanzania, Seychelles and Zambia – from Barclays Plc’s data centre in the United Kingdom to Absa’s data centre in South Africa.

The migration, which took place during 12 to 14 April, entailed moving customer transaction-processing capability and data from IT systems owned and housed by Barclays to systems owned by Absa in South Africa.

During the migration, which is part of Absa Group’s separation from Barclays PLC, banking services were temporarily unavailable but customers had been informed in advance so they could make alternative arrangements. Normal operations resumed on Monday, 15 April, with all branches open and all digital channels and ATM services fully restored.

“The successful completion of the project, which was large and complex and one of our key Platinum projects, is another significant milestone in Absa’s separation from Barclays, due for completion in June 2020,” said Paul O’Flaherty, Chief Executive: Engineering Services at Absa Group. “This demonstrates our commitment and capability in ensuring an orderly separation.”

The migration unlocks a number of benefits, including an upgrade of the bank’s hardware infrastructure, enhanced resilience and preparation of systems in line with Absa’s Application Programming Interface (API) strategy.

In addition, knowledge transfer from the Barclays Plc technical team to local resources will enable additional flexibility and scalability, and reduce a number of risks.

Previous milestones in the separation programme include the launch of Absa’s new business strategy in March 2018, achieving regulatory deconsolidation in June 2018 and launching a refreshed brand in July 2018, among other developments.