Cathy Smith to Transition from Role as SAP Africa MD Amid Internal Changes
Cathy Smith, the current Managing Director (MD) of SAP Africa, will soon transition from her role as her contract comes to an end in the coming months, ITWeb has learned. However, she will remain within the company and move into a new position, as SAP undergoes internal organizational restructuring.
In a statement provided to ITWeb, SAP, the German-based software giant, confirmed Smith’s transition, noting that the move is part of ongoing organizational changes. “Internal organization changes are commonplace within corporates, and anything that is of external relevance is always communicated when appropriate. Cathy Smith will transition from her current role this year in a structured and responsible way that ensures good governance and continuity for all stakeholders,” the company explained.
Smith has been with SAP since 2018, after a three-year tenure at Cisco as MD for Sub-Saharan Africa, where she led go-to-market strategies and digital transformation efforts across the region. Her corporate leadership experience spans 23 years, having held various leadership positions at IBM before moving to Cisco and eventually joining SAP.
During her five-year plan at SAP, Smith was tasked with several critical goals, including rebuilding the team, supporting customers, and expanding SAP’s cloud business on the African continent. According to SAP, Smith surpassed expectations, driving meaningful growth and development across key areas of the business. In particular, she focused on creating a culture that emphasizes diversity, equality, and inclusion within SAP Africa.
Under her leadership, SAP has made significant strides in these areas. Globally, SAP reports that women make up 34% of its workforce, while 27% of the company’s leadership roles are held by women. Smith has also been recognized for her leadership efforts outside of SAP, as she is a fellow of the African Leadership Initiative, which aims to nurture a new generation of African leaders who balance the challenges of globalization with their countries’ individual visions of prosperity.
In October 2023, Smith was named among Africa.com’s list of 50 women CEOs leading corporate Africa, further solidifying her influence within the industry.
A Challenging Period for SAP Africa
Smith’s transition comes at a time of internal and external challenges for SAP Africa. Shortly before her arrival at SAP, the company experienced a significant executive shake-up in the African region. Several top management team members were placed on administrative leave following allegations of corruption and misconduct. These allegations implicated SAP in a series of public sector deals worth $50 million (approximately R595 million), including contracts allegedly facilitated through the controversial Gupta family, known for their close ties to former South African President Jacob Zuma.
Following these revelations, SAP admitted to compliance breaches and misconduct within the company’s public sector dealings. This led to a broader investigation, as well as internal efforts to improve governance and accountability within the company. Smith’s appointment as MD of SAP Africa came as part of these reforms aimed at rebuilding trust and establishing greater transparency in the company’s operations on the continent.
New Legal Challenges
Despite SAP’s efforts to rectify past issues, new legal challenges have emerged. In November 2023, it was revealed that SAP is facing a significant legal claim from South Africa’s Special Investigating Unit (SIU). The SIU is seeking R1 billion from the company over fees paid by Eskom, the state-owned power utility, related to government contracts that are linked to state capture.
The SIU, which is tasked with recovering public funds lost to corruption and fraud, has filed its claim with the Special Tribunal, alleging that SAP paid substantial amounts of money to intermediary companies controlled by the Gupta family. This lawsuit comes on the heels of SAP agreeing to a settlement of R345 million with South Africa’s Department of Water and Sanitation over an invalidated contract that was similarly linked to allegations of corruption.
The settlement followed the discovery that the water affairs contract did not comply with the country’s Constitution, the Public Finance Management Act (PFMA), treasury regulations, or the department’s supply chain management policies. In September 2023, the Special Tribunal confirmed that a full and final settlement had been reached regarding this case.
However, the latest Eskom-related claims indicate that SAP’s legal troubles in South Africa may not yet be over. The SIU is determined to pursue its claim for R1 billion in relation to payments SAP made to the Gupta-linked companies during the height of state capture.
Looking Ahead
As Smith transitions from her current role, SAP Africa continues to navigate both internal changes and external challenges. Nevertheless, her leadership has been marked by efforts to foster growth, rebuild the company’s reputation, and enhance diversity within the organization.
With a proven track record at companies like Cisco and IBM, Smith’s next chapter at SAP will likely see her continuing to influence the company’s direction and contribute to its broader goals, even as SAP works through its legal and organizational issues.
SAP has expressed its appreciation for Smith’s contributions during her tenure as MD, noting her dedication to the company’s strategic objectives and her ability to guide the business through both growth opportunities and moments of difficulty. As the company adapts to a changing market and regulatory landscape, Smith’s new role is expected to be crucial in shaping SAP’s future on the continent.