Zimbabwe

Zim warned on rushing bank seizures

2012-07-27 22:12
Zimbabwe's central bank chief has warned the country's fragile economy could grind to a halt if the government rushes its planned seizure of majority stakes in foreign-owned banks. (AFP)

Zimbabwe's central bank chief has warned the country's fragile economy could grind to a halt if the government rushes its planned seizure of majority stakes in foreign-owned banks. (AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Special Report

Nyanga - Zimbabwe's central bank chief warned on Friday the country's fragile economy could grind to a halt if the government rushes its planned seizure of majority stakes in foreign-owned banks.

"The implementation of indigenisation and economic empowerment regulations in the banking sector should be done in a manner that preserves confidence since any adverse developments in the banking sector could grind economic activity to a screeching halt," Gideon Gono said.

He was speaking to business executives at the annual congress of the Confederation of Zimbabwe Industries in the eastern resort town of Nyanga.

Zimbabwe passed in 2007 a law that forces all foreign-owned companies to hand over a majority stake of 51% to locals.

The law has forced mining firms, including the country's biggest platinum mine Zimplats, a subsidiary of South Africa's Impala Platinum, to submit schedules on how they will surrender a majority share.

"We are gratified to note that some aspects of the indigenisation and economic empowerment regulations are receiving attention with a view to harmonize and fine-tune pertinent issues," Gono said.

Indigenisation Minister Saviour Kasukuwere, in a government notice made public earlier this month, gave foreign banks and other companies one year to cede a 51% stake to locals, as required under current laws.

Mugabe's partner in a coalition government, Prime Minister Morgan Tsvangirai dismissed the ultimatum on the banks as illegal and a threat to the ailing economy's recovery prospects.

Britain's Standard Chartered Bank and Barclays Bank are among the major foreign banks with operations in this former British colony.

Read more on:    gideon gono  |  morgan tsvangirai  |  zimbabwe  |  southern africa

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
18 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/News
Horoscopes
Aquarius
Aquarius

It is easy to overspend in a moment of indulgence as the boundary lines blur today. Create a budget system to help you keep things...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.