From taking on Jacob Zuma to running South Africa’s biggest bank

Lungisa Fuzile went from a dedicated public servant who spoke out against state capture to running South Africa’s biggest bank. He is a rare example of a bureaucrat who successfully switched to the private sector.

His time as director general of the National Treasury saw him oppose the notorious nuclear deal proposed by Jacob Zuma’s administration and fight against corrupt leaders capturing the institution. 

Fuzile was the steady hand that guided the National Treasury through the hiring, firing, and hiring again of Pravin Gordhan. He used the knowledge passed on from Trevor Manuel and Maria Ramos to ensure the institution’s integrity. 

After Malusi Gigaba was appointed Finance Minister, Fuzile realized it was time to move on and use his resignation to highlight state capture’s damaging effect on government institutions. 

Fuzile has now led South Africa’s biggest bank by assets, Standard Bank South Africa, for over five years. 

He was recently replaced by Kenny Fihla on 1 September and will take on other roles within the bank’s African Regions portfolio and public policy and regulation.

Born to two teachers under Apartheid, Fuzile never thought he would end up leading South Africa’s finance ministry or working for a bank. 

In an interview with Clement Manyathela on 702, Fuzile said his parents were adamant there was no better profession than teaching. 

All five of their children went on to qualify and work as teachers for at least part of their careers, despite their desire to break out of their parents’ mould. 

After qualifying as a teacher at the University of the Transkei, Fuzile practised as a teacher for a few years before deciding to pursue his passion for economics. 

He graduated with a Master of Commerce specialising in Economics from the University of KwaZulu Natal in 1996 and soon began his decades-long career in public service. 

Fuzile tried his hand at Stats SA and collected economic data for the organisation, but his role only lasted a year as he eyed a move to the National Treasury. 

At the time, a major factor in pulling him into the finance ministry was its leadership, including Minister Trevor Manuel and Director General Maria Ramos. 

During their tenure, South Africa enjoyed its strongest period of economic growth as a democracy, with the government even managing to run a budget surplus. 

Fuzile would not leave the National Treasury for another twenty years, but his time there was anything but boring. 

Resisting state capture

Fuzile first found himself working in the intergovernmental policy and planning department, rising to become its chief director and Deputy Director General in 2006. 

As is tradition within the National Treasury, individuals are regularly moved between departments to expose them to the institution’s workings, particularly when in leadership roles. 

Fuzile moved into the role of Deputy Director General of assets and liability management, where he worked for two years before being promoted to Director General in 2011. 

This was when things began to change at the National Treasury, with Jacob Zuma becoming President in 2009 and swiftly removing Manuel and Ramos. 

South Africa began running consistent budget deficits, racking up a massive debt pile, and economic growth slowed to snail’s pace. 

Fuzile was thrust into this leadership role, knowing that things would be tough but unaware of how difficult they would get in the coming years. 

When taking the job, “I always had an option in my back pocket, where if someone tried to force me into signing something that was not right, I could refuse and resign without any problems,” he said. 

“Not everyone had the noble goal of a better life for South Africans. They would say it, but they would not mean it.” 

Fuzile was soon swept up in the state capture machinations, being pressured alongside Minister Pravin Gordhan and his deputy Mcebisi Jonas to sign off on deals that were unfeasible given the country’s finances. 

One example was the proposed acquisition of Engen by PetroSA for R18.7 billion, which was presented to Fuzile without due diligence. 

“The process was so flawed. It defied logic. This was not in the interests of South Africa.” 

Things really began to heat up towards the end of Jacob Zuma’s first term as President when Pravin Gordhan’s first tenure as Finance Minister came to an end, and Fuzile no longer had political protection. 

This was when Zuma’s administration proposed the massive R1.6 trillion nuclear deal, which was eventually declared unlawful and unconstitutional. 

“This was the biggest procurement ever in the history of the country, yet the processes were rushed,” Fuzile told the Zondo Commission in 2019. 

The day before Nhlanhla Nene was fired as Finance Minister, Fuzile attended a meeting with several Cabinet members regarding the deal. 

In the meeting, Fuzile said he and Nene were pressured to sign off on the deal without ever seeing any financial considerations included in it. 

Fuzile said he had never even seen the deal before. He only found out the nuclear programme was included by asking a colleague from the Department of Mineral Resources and Energy. 

At the December 8 meeting, Zuma allegedly confronted Nene about his unwillingness to approve the deal. The former president purportedly accused him of stymying the 2014 PetroSA-Engen deal.

“You and your former minister [Pravin Gordhan] had stopped the Engen-PetroSA project,” Zuma allegedly said.

According to Fuzile, Zuma also said that in other countries, “finance ministers do not tell presidents that there is no money”.

Upon finally receiving the proposed nuclear plan, the National Treasury studied it and found that it was completely unviable for the country and would plunge it into a debt crisis. 

“We did what we had been taught by Trevor Manuel. Do a rigorous technical analysis that cannot be faulted in any way.” 

Even then Fuzile did not think his days were numbered at the National Treasury, while Nene was fired from his post, he stayed on. 

From public to private

While Fuzile always had an option in his back pocket to leave public service, he never felt he would have to use it, no matter how intense the political interference became. 

However, this all changed when Pravin Gordhan’s second stint as Finance Minister came to an end in 2017. Along with his deputy, Mcebisi Jonas, the finance ministry was effectively stripped of its political leadership. 

When Malusi Gigaba was appointed Finance Minister, Fuzile knew it was time to go as it was clear he would be tarnished for life if he worked under Gigaba. 

“The Gigaba era was six weeks for. That is when I decided because I knew the risk that staying would entail. If I stayed any longer, I would have been suspended and blemished for life.” 

Fuzile said working under Gigaba would have ensured he would never find employment elsewhere afterwards and would have threatened his livelihood. 

“I had to preserve my name and reputation while hoping my departure would make the point that the situation is untenable.” 

Fuzile would enjoy an eight-month break from work before Standard Bank approached him to become CEO of its South African division, its largest on the continent. 

As CEO, Fuzile has driven the bank’s foray into sustainable financing as part of a Group-wide initiative and overseen the reincorporation of the Liberty business in South Africa into the bank’s operations. 

As chairperson of the Banking Association of South Africa, Fuzile has also led the industry’s collaboration with the government to solve some of the country’s most critical issues, such as load-shedding and logistics. 

Fuzile was one of the few South Africans to stand up to Jacob Zuma’s attempts to capture the state and his role as Director General of the National Treasury ensure the institution remained fiercely independent. 

Last week, Standard Bank announced that Fuzile will move from his role as Standard Bank South Africa chief executive.

He will now take up two roles: group head of public policy and regulation and regional chief executive of the group’s southern and central region of the African region portfolio.