Parliament, BoU block appointment of foreign national as Stanbic CEO

The controversy arose when the Stanbic Bank Board of Directors tapped the CEO of Stanbic Bank Eswatini to succeed Anne Juuko, who was promoted to a regional role within the Standard Bank Group. Lawmakers and the central bank questioned the rationale behind overlooking qualified Ugandans for the top job.

Parliament Rallies Behind BOU's Decision

Deputy Speaker Thomas Tayebwa ignited the debate during a parliamentary session, expressing strong reservations about the appointment. He highlighted the bank's impressive performance under Ugandan leadership, citing the tenures of Patrick Mweheire and Anne Juuko.

"Stanbic Bank was in the hands of a Ugandan, Patrick Mweheire, and it performed very well. They brought in a female Ugandan young lady [Anne Juuko], and she also performed exceedingly well," Tayebwa remarked. "The question of bringing in a non-Ugandan for a bank that we entrusted with our biggest assets and keeps most of our money, you would ask yourself, why?"

Anne Juuko the former Chief Executive of Stanbic Bank Uganda Pulse Live Uganda

Tayebwa's argument resonated with Otuke County MP Paul Omara. Omara emphasized Uganda's significant investments in human capital development, asserting that the country possesses the necessary expertise to manage institutions like Stanbic Bank.

"Normally, the practice is that foreign nationals are recruited as long as there are no experts locally; yet where we have reached in matters of financial institutions, we have made great improvements and can raise the quality of the CEO needed," said Omara.

Solidarity with BOU, Parallels with Regional Practices

The Deputy Speaker stressed the importance of Parliament demonstrating solidarity with the central bank's stance on prioritizing Ugandans in leadership roles within the banking sector. He pointed to similar practices in neighboring countries like Kenya and South Africa.

"I understand each and every bank submits a succession plan to the Central Bank regularly. There is no foreigner who can go to Kenya and become an MD of a bank. In South Africa, where Stanbic is coming from, there is no foreigner who can be a managing director of S Bank; why Uganda?" queried Tayebwa.

Stanbic's Performance Under Ugandan Leadership

Anne Juuko's achievements during her tenure as CEO further bolstered the argument for Ugandan leadership. Juuko assumed the role just as the COVID-19 pandemic began, a period that severely impacted the Ugandan economy. Despite these challenges, she oversaw significant growth.

Upon her appointment in March 2020, the bank's assets stood at 6.7 trillion shillings. By June 2023, that figure had grown to 9.4 trillion shillings. Similarly, market capitalization rose from 1.33 trillion to 1.6 trillion shillings during the same period.

Stanbic's Explanation Fails to Convince

Stanbic Bank attempted to justify its decision by highlighting the presence of Ugandans in executive positions at the regional level, including Juuko and her predecessor. However, Deputy Speaker Tayebwa remained unconvinced.

"They say they have many Ugandans at the regional level in executive positions; yes, we need MDs [Managing Directors]. Really, I want to support the Central Bank for rejecting a non-Ugandan who was nominated," Tayebwa declared.

He expressed suspicion that Stanbic's decision might be motivated by a desire to regain control after the bank's success under Ugandan leadership.

"This is our largest bank. If anyone has confidence in us, let them have a Ugandan, and we have them who are capable. Otherwise, out of the succession plan that they have been submitting to the Central Bank, why were they saying, 'We have so and so,' then at the end of the day, you bring someone from another country?"

Government Weighs In: Foreign Expertise Only When Necessary

The Minister for Public Service, Wilson Mukasa Muruli, weighed in on the debate, acknowledging the legitimacy of recruiting foreigners when there is a lack of qualified locals. However, he commended the BOU's move in this instance.

Stanbic Bank Appoints Interim Leaders

In the wake of this controversy, Stanbic Bank Uganda has appointed Samuel F. Mwogeza as its interim CEO and Barbara Dokoria as interim executive director. These appointments are effective April 1, 2024, and will hold until permanent replacements are chosen.

The appointment of a non-Ugandan as Stanbic Bank CEO has sparked a national conversation about balancing the need for foreign expertise with the desire to empower local talent. As the