Nedbank's expanding, but hiring's still on hold

All major South African banks are looking beyond their borders. With South Africa gripped by its first recession in 17 years and bad debts and investment impairments rising, the hope of growth comes from other African countries.

Few have put the case more forcefully than Tom Boardman, chief executive of Nedbank: “We still have a tough year ahead of us in the South African banking system but we are in really good shape. We are expanding this year and we are looking at the immediate countries that surround us.”

Unfortunately, expansion is likely to come from acquisitions rather than hiring. “We do not have a formal hiring freeze in place but in practice this is what it amounts to,” says Don Bowden, head of investor relations at Nedbank in Johannesburg. “Currently in South Africa we are doing the bare minimum, only recruiting for positions we need to fill.”

Instead or growing organically, Nedbank plans to grow through acquisition. It’s mapped out a strategy with its partner, Ecobank to create a pan-African banking network spanning over thirty countries. The two have carved up the continent between them, with Nedbank focussing on the Southern Africa Development Community (SADC) region and Ecobank expanding in the African countries further North that it knows best.

However, if the planned acquisition in SADC countries materialise as Mr Boardman hopes, then recruitment opportunities will open up: “We may well be hiring, we hope to be hiring, but it is too early to tell.” When the time comes to cast the net, though, one thing is certain, Mr Bowden says: “We shall not have to look very far. There are plenty of good and skilled people in South Africa and a lot of good South Africans outside the country.”