Zim warned on rushing bank seizures

2012-07-27 22:12

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.

  • jack.russel.14268769 - 2012-07-27 22:35

    Mugabe is running out of things to buy votes with.

  • glen.e.huysamer - 2012-07-27 23:24

    Mugabe has not got long to go, and it seems his cadre' are on the charge to grab what is left of anything that is working, before he dies. I think the issue will pass over eventually when the dictator goes to his grave.

  • tommo.too - 2012-07-28 02:45

    Give them Barclays. Debt and all. Thatll teach them...

  • tkmatewa - 2012-07-28 02:59

    The 51 percent share holding law must be something of the past since we have just finished drafting a new constitution.I hope the new constitution doesn't support the seisure of all foreign owned investments by locals.

  • tkmatewa - 2012-07-28 03:00

    The 51 percent share holding law must be something of the past since we have just finished drafting a new constitution.I hope the new constitution doesn't support the seisure of all foreign owned investments by locals.

  • J.Stephen.Whiteley - 2012-07-28 05:45

    Interesting that he does not believe in total confiscation. The entrepreneurs do the work and his friends take the dividends. Let half the lions breed and hunt the other half

  • john.chebanga - 2012-07-28 06:01

    Ever since the seizure of farms, hunger and famine has been the order of the day. Now i wonder what it's gonna be after the seizure of banks. Cry my beloved nation.

  • kevin.moxham.3 - 2012-07-28 06:02

    If someone wants a bank or a mine or a farm or a shop why dont they open one or develop one or buy one for themselves - this is called creating value and this grows the economy and creats jobs and wealth - stealing someone elses only demonstartes laziness, incompetence and inability.

  • Eric Mdudus Shaku - 2012-07-28 07:21

    yah neh no words to say!

  • jabulani.ngwenya.90 - 2012-07-28 07:22

    are these 51% going to be paid for or delivered in a silver plater to Gvt croonees without paying a cent? whom do you would want to invest in such a country where your efforts will be just taken like that, legalised day light robbery by the Zim Gvt? zanu pf is on route to ruin Zim completely before the next Gvt takes over. i think a comprehensive audit of such dogeous transactions should done so that as soon as a new Gvt takes over such shares should be recovered with every interest back to the rightful owners who so much had faith in Zim to invest and create employment by contributing o the ill managed country's economy.

  • graeme.potgieter - 2012-07-28 07:24

    Typical.wants everything for free.his bank balance must be running low

  • mullervince - 2012-07-28 07:26

    Cannot build up something for themselves, now they want to steal from their own breadgivers.

  • thabo.kowang.1 - 2012-07-28 12:46

    Why black Zimbabwean can't open their own black \r\nBanking institutions rather than taking foreign banks, if Mugabe wants blacks to own, let him give those blacks money to open black own banks, it seems black leaders cannot think properly. Mugabe is a real problem to his own people, may be nature has created him to be a super problem

      brendon.napier - 2012-11-15 19:23

      Clever blacks are really becoming a problem to government these days p

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