Welcome new brooms at the helm of NBM, CDHIB

It has been an eventful five or so years in the banking sector where we have witnessed several changes of guard at the top of the country’s commercial banks.

What is more exciting about the changes in recent years is that more Malawians are taking over the top jobs that in some institutions had remained a preserve of expatriates.

This week, we raise a toast to four Malawians, three gentlemen and one lady, who have ascended to the helm of two of the country’s banks, namely National Bank of Malawi (NBM) plc and CDH Investment Bank (CDHIB).

Coincidentally, the two banks are located a stone’s throw away from each other. In fact, their offices are separated by one office block and a road.

NBM plc has appointed a seasoned banker Harold Jiya as chief executive officer (CEO) designate with effect from January 1 2024 to replace MacFussy Kawawa who is due to retire in June this year. Jiya, who until the appointment was the bank’s deputy CEO and chief commercial officer (CCO), will have NBM chief finance officer Masauko Katsala as COO and deputy.

Next door to NBM plc, CDHIB has named hitherto deputy CEO Thoko Mkavea as CEO and managing director from January 1 this year. Mkavea, who has taken over from Ghanaian Kwame Ahadzi, will be deputised by Beatrix Mosiwa who will double as executive director.

Mosiwa’s appointment means that now there are two women serving as deputy CEOs in the country’s commercial banks. The other one is Temwani Simwaka at NBS Bank plc. On the other hand, there are two women serving as bank CEOs, namely Zandile Shaba of Centenary Bank Malawi and First Capital Bank’s Agness Jazza who was promoted last July.

While Jiya has six months before taking full charge of the country’s biggest bank by assets, Mkavea has already hit the ground running and, during a CEO Engagement Cocktail he hosted in Blantyre last Friday, he pledged to take CDHIB beyond traditional banking by delving into governance, planning, research and advisory. CDHIB transformed from Continental Discount House Limited 12 years ago.

Worth noting in the two transitions at NBM plc and CDHIB is the succession plan where those taking over have grown through the ranks. This arrangement tends to guarantee smooth and seamless transition in leadership, thereby sending positive signals to the market.

NBM plc, which is 51.5 percent owned by Press Corporation Limited, 22 percent by Old Mutual Malawi and the remaining 26.5 percent held by the public, has six subsidiaries, namely Akiba Commercial Bank of Tanzania, Stockbrokers Malawi Limited, United General Insurance Company Limited, NBM Capital Markets Limited, NBM Development Bank and NBM Pension Administration Limited.

CDHIB, which opened for business on April 2 2012 following conversion from Continental Discount House Limited which had operated in Malawi for 14 years, is a subsidiary of Continental Holdings Limited. The group also owns Continental Asset Management Limited, Continental Capital Limited, Continental Properties Limited and CDH Commodities Limited.

Succession planning is a critical strategy for any organisation striving for long-term success and stability. Besides ensuring seamless transition of leadership, it maintains continuity and encourages a culture of growth and development.

Everytime there is a change of guard in an entity, I am reminded of the narration in the book Execution: The Discipline of Getting Things Done by Larry Bossidy and Ram Charan with Charles Burck where a story is told of the rise of two individuals, namelyJamie Dimon, chairman of JPMorgan Chase and Charles Prince, former CEO of CitiGroup in the USA whose respective backgrounds at the helm of two of the largest financial institutions determined performance.

Jamie was the son of Theodore ‘Ted’ Dimon, a star broker of his time at Shearson and close friend of Sandy Weill who eventually put together the deal that created CitiGroup. Weill took Jamie under his wing during college summer breaks as executive assistant. In that way, Jamie understood the business better. Prince, on the other hand, had a different entry point to Jamie and struggled to execute effectively.

I wish the new brooms taking charge of the two banks success in their endeavours.

Best wishes and congratulations to Harold and Masauko at NBM plc and Thoko and Beatrix at CDHIB!