Nieeb to indigenise banks - Zimbabwe Situation

Nieeb to indigenise banks

via Nieeb to indigenise banks – DailyNews Live by Kudzai Chawafambira  9 FEBRUARY 2014 

The National Indigenisation and Economic Empowerment Board (Nieeb) — a government body created to implement the indigenisation programme — says it is pursuing the indigenisation of foreign-owned banks despite the inadvertent dangers that could befall Zimbabwe’s battered economy.

This comes as the non-constituency Senator representing people living with disabilities, Nyamayabo Mashavakure asked Nieeb on how it was going to implement indigenisation plans on foreign-owned financial institutions at a time when depositors’ confidence in the banking system has been severely compromised while the liquidity crunch bites.

“What exactly are you indigenising? Is it the depositors’ money or other things that do not involve depositors’ money? You have to explain and extend it to insurance companies and other financial sector services whether our contributions are indigenised as well,” he said during Nieeb’s oral evidence presentation to the Parliament’s Indigenisation and Economic Empowerment committee last Thursday.

In response, Nieeb chief executive Wilson Gwatiringa said indigenisation for all businesses entails re-arranging the shareholding structure of the business.

“The re-arrangement entails the sell and purchase of shares. It does not cascade down in banks’ depositors funds. No one touches that or operating assets.”

“Its (indigenising banks) to do with shareholding at the top where for example, a consortium of indigenous Zimbabweans may go and buy a stake in Standard Chartered Bank and pay for the shares.

“The consortium will stay as shareholders and have rights and obligations,” he said.

Despite repeated warnings that indigenising the foreign-owned institutions could be disastrous to the sensitive financial sector, Nieeb remains adamant.

Market watchers note that even the recent Monetary Policy Statement (MPS) presented by acting Reserve Bank of Zimbabwe (RBZ) governor Charity Dhliwayo did not attempt to address such a pertinent issue which is still a bone of contention.

“The monetary policy statement certainly and intentionally overlooked the issue of indigenisation because they are aware that it can’t be an option at this hour.

“Zimbabwe is a dry market at the moment which cannot have the luxury of demanding 51 percent of a rat when they know it is time to build an elephant,” said leading economist Takunda Mugaga.

COMMENTS

WORDPRESS: 10
  • comment-avatar
    John Thomas 4 years

    Nieeb, dweeb, dunce, fool, donkey. They want their thieves in control so they they can siphon other people’s money into their own pockets. There is nothing subtle going on.

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    Kuakwa Katiyo 4 years

    What is the end-game of indigenization? Blacks own a lion’s share of foreign owned companies then what? Does black majority ownership mean success? If a foreign owned company is very successful today does it follow it will be successful after black zimbabwean majority ownership? Those blacks who have money to buy 51% of foreign companies why are they not encouraged to start their own companies with that money, indeed why don’t they have the courage to say they don’t need the silver spoon pushed into their mouths by a 90-year old they can be successful on their own. Is Zimbabwe learning anything from the disastrous management of its parastatals? Looks like at 90 mugabe is so short-sighted all he can see/hope for is salvaging a little bit of pride by saying I took whiteman’s businesses like I did agricultural land. Even as the land reform was a disaster and indigenization is a self-destruct button.

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      3poop 4 years

      kikiki shamwari Katiyo tea some of these truths you say here will get you into trouble.if you see mukuru achizitundira unongonyarara as if you did not see anything.thats what they want us to do.to shut the f up.wamunzwa amai mujuru nezuro..ehe

  • comment-avatar
    Mlimo 4 years

    Good one this is the next line of zanupf money grabbing schemes. What next? Steal from the people, steal from each other ! What a kleptocracy! What fool or imbecile is ever going to put any investment into Zimbabwe now?

  • comment-avatar

    HEY– why not give the 51% to those ZIMs with deposits. Announce it and there will be a rush to deposit money into these banks

  • comment-avatar

    If they want to buy 51% of the shares in a listed company then go to the market and buy them, there is nothing stopping them doing that. Problem they intend to pay like they paid for the farms – Hot air and no money!

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    Jenandebvu 4 years

    Since my days at college, as NUST finance students we organised workshops and seminars to get incite on economic drive from Businesspeople. I remember in 1996/97 hosting William Nyemba (initially NMB cum Trust Boss; Phillip Chiyangwa (AAG), Chidakwa (Native Africa Investment); Mutumwa Mawere (SMM Holdings) etc These were businessmen full of clout and exerburrence. The motive and the drive was Black Empowerment. Barclays, Standard Bank, Zimbank were there. The season that followed was a season of bank, finance houses and asset management creation. NMB, Trust,Tetrad, NDH, ENG (created by my classmates while they were on industrial attachment), Genesis, Premier discount House (yamukoma Exodus Makumbe iya), Capita Bank, and many micro-finance institutions owned 100% by black Zimbabweans, have all proved to fail leavi standard bank, barclays and other foreign owned going on. First change the mentality of local businessmen and put proper structures to supervise policies and opperating guidelines. RBZ bank supervision has no capacity, skills, resources and no mandate to handle that

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    easily fooled 4 years

    In fact there was a moment when debate was centred on whether the Zimbabwean economy was not overbanked. It reminds me of black owned banks financing Condozi (padhuze nemarange apo, pakazowanikwa Goda). Ask Trust, Kingdom and CBZ and they can narrate the good old days. Black owned banks can start from scratch and prosper like the Trust Bank of 2001 to 2002, the Kingdom and CBZ of 2003, the NDH of 2000. Success of the banking business depends a lot on economic viability. There was great farming a Kondozi, floors were leaving Zim Airport every morning for Netherlands, and delivery vans running to and from Odzi like butterflies. The economy was working from Agric, transport, logistics and then money (banks) were needed to support.

    Taking 51% of Barclays changes the board, placing in the Dubes and these happysons to direct policy……and gues what, the policy will change from lending to vibrant borrowers to insider lending……and collapse of the few remaining banks. Its a government that wants to die with the economy. He knows he is 90 and has not as many years to live as me and you. But he wants to destroy all before he sleeps with the mujurus at the NATIONAL SHRINE.

    DEATH? WHERE IS THY STING?

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    Saddened 4 years

    Indigenise the foreign banks and THEN see what happens to our economy, which is already in ICU. If Nieeb really want to do something useful for the people they should take over the local banks whose performance has been woeful to the great disadvantage of their depositors. But that won’t happen of course

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    Mthwakazi 4 years

    If the truth were to be told; indigenisation should mean empowering Abathwa/the San people/Basarwa.

    These are the real indigenous people – not those loud-mouths who like claiming things, whom we ALL know!!!