PROMINENT Harare lawyer and serial entrepreneur Tawanda Nyambirai, the founding director of Steward Bank, formerly TN Bank, has engineered a remarkable return to the financial institution he founded, after raising his shareholding in the bank holding company to a controlling interest.
His return follows significant restructuring of EcoCash Holdings Zimbabwe Limited (EHZL)'s shareholding, which culminated in Mr Nyambirai assuming control of the bank he founded.
He is now the group chief executive officer of EHZL.
Mr Nyambirai's connection to Steward Bank began with TN Bank, which he started and led for some time.
Following the sale of TN Bank to Econet Wireless in 2012, Mr Nyambirai's association with the bank continued through his connections to TN Asset Management (TNAM).
He explained the series of events that led to his return and ultimate acquisition of additional shareholding in the company.
"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."
The underwriting, he explained, resulted in TNAM acquiring an additional 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."
He now controls over 53,2 percent of the bank holding company, with the additional 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 former chairperson Sherree Gladys Shereni.
Dr Titus Murefu has been appointed the new chairman.
Mr Nyambirai's appointment as group CEO signals a renewed focus for the bank and his vision for the institution.
His return comes at a critical moment for 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.
Mr Nyambirai's vision entails transforming the bank into a "CyberTech banking group".
He described this as a future where "the traditional branch will be replaced by a banking kiosk from which customers will transact using computers, smartphones and iPads and ATMs".
"Picture the setup in modern phone shops that you find abroad. Then you will get the picture I am trying to paint," he said.
He also plans to enhance the online banking platform to allow for automatic account opening and has emphasised a renewed focus on customer service, guided by the values of Innovare, Dignitas, Industria, Fides, Originalis and Humilitas (IDIFOH).
Reflecting on his past decisions, Mr 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". "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.
Mr Nyambirai acknowledged the need for workforce adjustments.
"The bank is over-employed. We must have the right size," he said.
However, he pledged to explore all options to save jobs before resorting to retrenchment.
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.
Mr 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.
One of the most respected legal minds in Zimbabwe, Mr Nyambirai has handled big profile corporate and civil suits; Nyambirai Vs NSSA in 1997, Econet Vs Minister of Telecommunications 1997 and Econet Vs Telecel 1998, among others.
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An expert negotiator, he played a huge role in the renewal of Zimbabwe's largest mobile operator's (Econent Wireless) licence in 2013.
He successfully led the negotiations for the renewal of the Econet Licence, which resulted in the licence fees demanded at US$250 million being reduced to US$137,5 million while the licence tenure was extended by a further period of 5 years to 20 years.
Mr Nyambirai is also reputed for his top-notch advisory skills in structuring transactions, having played a critical role in the mobilisation of facilities exceeding US$$300 million by Econet Wireless, arguably the largest fundraising by a listed company in Zimbabwe.
He also advised Econet on the raising of US$120 million outside Zimbabwe through a rights offer. The rights offer transaction ranks among the top five largest rights offers on a stock exchange in Southern Africa.
Mr Nyambirai was also involved in the demerger of Kingdom Financial Holdings Limited from Meikles Africa, one of the most interesting transactions he facilitated, after realising it was in the best interest of shareholders for the institutions to separate.
Having been involved in advising on and structuring the merger in the first place, Mr Nyambirai was there when the parties to the merger fell out, leading minorities to request a meeting and drafting the demerger process.
