Johannesburg, South Africa – Questions have been raised by investors on the idea behind Sithule Tshuma’s selection of a group of about 20 women, mainly from the diaspora, to form a Qoki Bank project in South Africa, Botswana, South Sudan and Zimbabwe.
The motive behind the establishment of this financial institution remains unknown, with stakeholders and investors now suspecting that this Qoki bank might have been one of its director’s Idea, Karen Kumalo, as she is the ‘Qoki Banking Guru’, the ‘7 streams of income Guru’.
Stockholders have not seen the benefits of this investment, leading them to suspect that they have fallen into yet another fraudulent scheme.
Below are some of the internationally accepted reasons for people or Governments to establish Banks:
Financial Inclusion: By establishing a new bank, the aim is to bridge the gap and provide access to affordable banking products and services to individuals and businesses currently excluded from the traditional banking system.
Competition and Innovation: Introducing a new player in the banking industry will foster healthy competition and encourage innovation. This move will motivate existing banks to improve their services, introduce new technologies, and develop innovative financial solutions to remain competitive in the market.
Economic Growth and Investment: The formation of a new bank will facilitate increased lending and capital flow into key sectors of the economy. This infusion of funds is expected to stimulate economic growth, create employment opportunities, and attract local and foreign investments.
As part of investors in the Qoki Bank, one of the issues some have pondered on is the prerequisites of forming a new bank. It’s been over three years since Tshuma applied for the Qoki Banking licence via an agent. Outlined below are some of the prerequisites of setting up a Bank:
Financial Stability and Capital Requirements: Prospective banks must demonstrate a solid financial foundation and meet the minimum capital requirements set by the regulatory authorities. This ensures the institution’s ability to withstand financial shocks and adequately support its operations and customers.
Governance and Management: The proposed bank must have a robust governance framework and a competent management team. The individuals involved should possess extensive banking experience and a track record of ethical practices to ensure responsible and effective management of the institution.
Technology and Infrastructure: Embracing modern technology and having a reliable infrastructure is crucial for the success of the new bank. It should have the necessary systems in place to provide efficient online and mobile banking services, robust security measures, and seamless integration with payment networks.
For example, establishing a new bank in any country, like South Africa, involves a thorough vetting process to ensure regulatory compliance and safeguard the interests of depositors and the financial system. The critical steps in the vetting process include:
Application Submission: Interested parties or organizations must submit a comprehensive application to the relevant regulatory authorities, such as the South African Reserve Bank (SARB) and the Prudential Authority (PA). The application should include detailed information about the proposed bank’s business model, governance structure, financial projections, and risk management strategies.
Due Diligence and Assessment: The regulatory authorities conduct a rigorous assessment of the application, examining the proposed bank’s financial viability, management capabilities, compliance with legal and regulatory requirements, and alignment with the government’s financial inclusion objectives.
Approval and Licensing: If the application meets the necessary criteria and successfully passes the vetting process, the regulatory authorities grant approval and issue a banking license. This license authorizes the new bank to operate within the specified regulatory framework and offer banking services to the public.
In Qoki’s case, the plan is to obtain bank shares and trade under Botswana Diamond Bank or the Bank of Bulawayo.
Qoki Bank has sought Collet Ndlovu, formerly with the financial markets department of the South African Reserve Bank, as a Risk Advisory Director to conduct all its banking applications. It is a concern from some investors that the prerequisites and vetting processes have been deemed good enough by Ndlovu in contrast to those outlined above. One of the issues raised was that Tshuma used other Qoki projects to meet the banking prerequisite criteria without the consent of women who crowdfunded those projects, especially when they still needed to be completed. This applies to almost all funding and approval requests that Tshuma has made for projects such as, Qoki Market, Qoki Hotel and Golf Course, Qoki Hwange/Plumtree Filling Station, Qoki Esigodini Girls High and Qoki African Dawn/Riverwood Village.
In an attempt to assure the prospective Qoki bank owners, Ndlovu stated
‘In Botswana, the Diamond Bank will control all the diamonds and minerals from the region and also being a commercial bank which does the usual banking services that banks like Barclays Bank can do.
The same bank has been approved to own the vaults for all diamonds of the region (taken away the rights from De Beers). It will also be authorized to run the commodities exchange for the whole world.
That is why the presidency wants to give a direct briefing to Qoki’.