Two major business stories have rocked South Africa at the same time. One involves a banking CEO losing his job. The other involves a historic sugar company that may soon shut down forever. Both stories are big. Both affect thousands of people. And both are happening right now.
African Bank has fired its CEO, Kennedy Bungane. The bank’s board removed him after two serious problems came to light. First, the bank had a very poor first quarter in its financial year, covering October and November 2025. That period was worse than usual. The bank still relies heavily on unsecured lending, which means it gives loans without taking assets as security. This makes it more risky, especially when customers struggle to repay before the festive season.
The second problem was even more worrying. The bank made errors in its regulatory reports to the Prudential Authority (PA). These reports are important. They tell regulators how safe and stable a bank is. The errors came after new Basel III+ rules were introduced. These rules changed how bad loans and recovered loans are defined. African Bank was one of the first banks to use these new rules. But the reports had mistakes. The PA noticed. It raised serious concerns about the credibility of the bank’s data.
The PA alerted the bank in January. The bank then resubmitted its reports with help from an external audit firm. Bungane also submitted a turnaround plan to the board on 27 February. The board approved the plan. But it still removed him from his role.
| Issue | Detail |
|---|---|
| Poor performance period | October–November 2025 |
| Regulatory problem | Basel III+ reporting errors |
| Plan submitted | 27 February 2026 |
| Board decision | CEO removed |
Now, the second story. Tongaat Hulett, a 134-year-old sugar company, is fighting to stay alive. The company was founded in 1892. It is one of South Africa’s biggest sugar millers. It can mill up to 2 million metric tons of sugar. It supports around 250,000 jobs in farming and related industries.
The company’s Business Rescue Practitioners (BRPs) applied to the KwaZulu-Natal High Court to place Tongaat into provisional liquidation. They say all options to save the company have failed. The trouble started in 2019, when a major accounting fraud was uncovered. Around R12 billion in shareholder value was destroyed.
A rescue plan was approved in January 2024, involving a group called Vision. But Vision and the Industrial Development Corporation (IDC) could not agree on funding terms. Vision was accused of adding new demands. This delayed everything. Eventually, sale agreements lapsed. The rescue plan collapsed.
Trade and Industry Minister Parks Tau stepped in. He is firmly opposing the liquidation. He called the BRPs’ application a misuse of the Companies Act. He said the law was made to save companies, not close them quickly for the benefit of creditors. Tau also said the IDC still believes viable rescue options exist and that funding remains available.
The SA Canegrowers Association also opposed the move. It warned that 27,000 small-scale and 1,100 large-scale growers would be affected. The association confirmed that Tongaat’s bank accounts have already been frozen, disrupting sugar operations.
The court adjourned the matter and set tight deadlines for further submissions. Hearing dates are expected in mid-March 2026. The outcome will determine the fate of an iconic South African company and the livelihoods of hundreds of thousands of people.
