Iqbal Survé Faces Bank Rejection: A Sign of the Times?

Significant headwinds are battering the financial fortresses of South African business tycoon, Iqbal Survé, as three of the nation's "big four" banks, Nedbank, Absa, and FNB, now refuse to transact with any companies affiliated with him and his Sekunjalo Investment Holdings.

The tipping point was reached after Nedbank sent closure notices to Sekunjalo's companies on the 15th of November last year. This move was reminiscent of Absa's actions from late 2020 when they became the first major South African bank to sever ties with Survé. FNB followed suit in March 2021, a move that gravity of which is only now becoming apparent. Survé's failed bid to interdict Nedbank's account closures marks his third defeat, having previously tried to challenge both Absa and FNB.

Survé's woes don't stop at three, though. Investec began closing Sekunjalo accounts in April 2021, and Mercantile Bank and Sasfin followed in May. An astounding 28 banks and representative offices of foreign banks have declined Sekunjalo's business, painting a dim picture of near-universal rejection within the banking sector.

The JSE-listed African Equity Empowerment Investments, Premier Fishing and Brands—along with the cash-flush Ayo Technology Solutions—all form part of Survé's suite of private holdings. As Nedbank closures commence and continue through May, these companies face serious financial instability.

All of this comes against the backdrop of a broader financial landscape; Standard Bank, as of August last year, remained the only bank providing significant banking facilities to Survé's businesses. According to Survé, however, even Standard Bank has put all its Sekunjalo accounts under review and has stopped opening new accounts for entities in the group. This could signal another wave of account closures, reminiscent of the Gupta Empire's downfall between 2016 and 2017.