Standard Bank CEO Sim Tshabalala urges overhaul of South Africa regulations

Standard Bank Group CEO Sim Tshabalala has called for an urgent review of South Africa’s regulatory framework, warning that outdated rules are weighing on growth and investment. 

In his annual letter to shareholders, published Monday as part of the bank’s 2025 report, Tshabalala said current regulations no longer reflect the country’s economic realities or social needs. 

“A comprehensive review and modernisation of the regulatory system is urgently required,” he wrote, adding that reforms should improve South Africa’s global competitiveness and make it easier to start and run small businesses.

Concerns over corruption and weak oversight 

Tshabalala said poorly designed rules can create room for abuse, pointing to cases where public contracts were awarded to unqualified firms, particularly in health, electricity and water services. 

Business leaders in South Africa have increasingly raised concerns about corruption and violent crime, issues they say are undermining confidence and slowing investment. 

Evidence presented at the Madlanga Commission has also highlighted alleged misconduct within parts of the police, with criminal networks operating with limited restraint. 

“This combination of graft and incompetence slows growth and development, prevents meaningful transformation, and leaves many South Africans without essential services,” Tshabalala said. 

He noted that the national government has recently stepped up efforts to address these challenges.

Basel III impact on infrastructure lending

Among the reforms under discussion is the implementation of Basel III, a set of international banking rules introduced after the 2008 global financial crisis to strengthen the financial system. 

While designed to make banks more resilient, some critics argue the framework makes infrastructure lending more difficult by assigning higher risk weights to such projects. 

South Africa’s National Treasury said in its 2026 Budget Review that it is working with the South African Reserve Bank Prudential Authority and industry groups to assess whether current rules are limiting infrastructure investment. A review is expected by midyear.

Strong results despite headwinds 

Founded more than 160 years ago and headquartered in Johannesburg, Standard Bank operates in more than 20 African countries and several global financial centres. 

Despite these challenges, Standard Bank reported solid results for 2025. Headline earnings rose 11% to R49.2 billion ($2.8 billion), while return on equity reached 19.3%. Growth in fees, trading income and contributions from operations outside South Africa supported the performance. 

Under Tshabalala’s leadership, the bank plans to grow corporate banking revenue by $6 billion by 2028 while continuing to strengthen its role as a leading financial institution on the continent.