Absa’s newly appointed Chief Executive Officer, Kenny Fihla, has outlined a transformative strategy aimed at repositioning the bank as a leading financial institution on the continent. His plan focuses on sharpening Absa’s client segmentation strategy, expanding its footprint beyond South Africa, and accelerating modernization to improve efficiency and reduce costs.
Fihla’s approach rests on four key pillars:
- Client-Centric Differentiation
Absa will prioritize specific client segments where it can create meaningful differentiation across retail, business banking, and corporate and investment banking (CIB).
“You win or lose at the client interface. We must sharpen our focus on the segments where we can win and deliver unique value,” Fihla emphasized. - Pan-African Expansion
With South Africa still accounting for the bulk of Absa’s revenue, Fihla aims to diversify by tapping into high-growth markets across Africa.
“We are overly concentrated in South Africa, but there are massive opportunities across the continent,” he noted. - Modernization and Efficiency
The bank will accelerate its digital transformation to reduce the cost of serving clients, improve customer experience, and enable more efficient capital allocation.
“Modernization will allow us to allocate capital better and improve return on equity,” Fihla said. - Strategic Acquisitions
Recognizing that transformation cannot happen overnight, Absa will actively seek acquisitions to strengthen its capabilities and scale across Africa.
“We will look for opportunities to bulk up as and when they present themselves,” Fihla confirmed.
This strategy comes at a pivotal time. Absa has steadily lost ground to rivals such as FirstRand, Standard Bank, and Capitec, largely due to leadership instability. Since Maria Ramos stepped down in 2019, Absa has had seven CEOs in seven years, a stark contrast to the stability enjoyed by South Africa’s other major banks.
- Nedbank recently appointed Jason Quinn after Mike Brown’s 14-year tenure.
- Standard Bank CEO Sim Tshabalala will retire in 2027 after more than a decade in the role.
- FirstRand CEO Mary Vilakazi succeeded Alan Pullinger in 2024, continuing a legacy of long-term leadership.
This instability has hindered Absa’s ability to execute a cohesive strategy, despite its large balance sheet. Fihla’s appointment signals a decisive effort to reverse this trend.
Poached from Standard Bank, Fihla brings a proven record of success. He joined Standard Bank in 2006 and rose through the ranks in its Corporate & Investment Banking (CIB) division, eventually becoming Chief Executive in 2017. Under his leadership, CIB doubled headline earnings to R20.5 billion and achieved a compound annual growth rate of 8.6%.
Fihla resigned as Standard Bank’s Deputy CEO in March 2025 and assumed the top role at Absa in June. His mandate: end the leadership churn and restore Absa’s competitive edge.
Fihla’s strategy marks the first cohesive plan since Ramos’ departure, giving Absa a clear path forward.
In my engagements with clients, regulators, and investors, I’ve seen the strength and competitiveness Absa still has. What has undermined that is leadership instability.
With a renewed focus on clients, modernization, and African expansion, Absa aims to reclaim its position among the continent’s premier financial institutions.
