via Standard Chartered Admits It May be Forced to Quit Zimbabwe – WSJ by Matina Stevis 22 May 2014
Standard Chartered may be forced to abandon its operations in Zimbabwe if the government pushes ahead with a bill to limit foreign investors’ holdings in banks to 25%, the bank’s Africa Chief Executive Diana Layfield said.
Standard Chartered fully controls a bank—Standard Chartered Zimbabwe—in the southern African nation.
A bill floated last week but not yet turned into law would force investors to require special approval from the country’s finance minister to own more than 25% in any financial institution.
Asked if Standard Chartered would be able to stay should this bill become law, Ms. Layfield said: “I think it would be very hard for us to do so.”
Barclay’s Bank owns 67.7% in Barclay’s Zimbabwe and would also be affected by the law, as would Standard Bank, a South African institution, which wholly owns a Zimbabwean entity, Stanbic Bank.
But Ms. Layfield, who was speaking to the WSJ on the margins of the African Development Bank meetings here in Kigali, said it was too soon to fret about the bill. “[It’s a] very early stage piece of legislation and there’ve been a number of those over the years,” she said.
“We would absolutely like to continue to play a very strong part in Zimbabwe’s economy. But how that happens is something that we’ll have to discuss with the government,” she added.
COMMENTS
They say that they want to attract investment then they implement policies that drive even the banks away
To be replaced by what- the Bank of Mugabe!??
They will replace it with Mugabank
I’m sure zanupf can dig out another Boka and truly F***** the entire banking systems up.
I suggest
“Mugarbage Bank and (Dis)Trust,(very-Pvt) Limited”.
If the law was to be passed no doubt Mugabe may want to buy the 75% share in Standard Charter for his daughter Bona. She is now looking for cushy job being ap-pointed CEO of Standard Charter Bank will be a good start. Ms Diana Layfield would be moved out of her present office and reassigned to branch manager of a growth point branch or something!
As the new CEO Bona will expect a new company house fully furnished and staffed, a chauffeur- driven company cars one for her and a second one for her husband, a generous salary package complete with equally generous allowance.
Not that Mugabe will spend a penny of his own money to buy the shares, he only has to express an interest and the shares are his.
The Banks will be granting huge loans to Zanu PF loyalists on the strengths of the applicant’s political connections that is all the collateral the banks will be expected to value above all else.
One can understand why Standard Chartered will seriously consider quitting; life will be very difficult because the only rule that counts is what regime wants and that is a very tough rule to live by.
The indigenization mob cannot bully Standard Chartered. If the bank pulls out it will not make much difference to them, but the effect will be big in Zimbabwe. Only the foreign owned banks still function here. Even CBZ is some kind of criminal ponzi scheme.
Remarkable! who makes up these strange ideas that later become laws in Zimbabwe? it very much feels like a bunch of spoiled brat 2 year old children saying: ‘I want, I want.’
Utterly unsustainable.
Look what they are doing, they started with fuel (BP) now banking. These idiots ran out of ideas 34 yrs ago
My heart is bleeding!!!!
That’s ZANU PF that you shona people like, some of us are watching from the terraces. We told you since 1980 that ZANU PF is not about people but a clique of hungry lions but you did not listen. Screw them Robby they are all yours!
With the tax base dropping they want to drop it even more.
government does not pay it self tax but the bank and its investers do so instead of tax on 75% of profit they will only get tax on 25% where is the logic.
people are not stupid let them do it we will see who wins remember if stanchart winds up business things will never be the same again,TONGAI TIONE
Of course Bona will never be required to have experience for any job. She is a real mwanawekumusha who will just walk into a CEO’s office with no questions asked!
More job loses on the pipeline-ndiyo Zimbabwe yacho
soon the people of zimbabwe will be forced to quit zimbabwe.
Soon whats left will Quit Zimbabwe everyone else except us that have nowhere to go are still here.
the Horror movie continues.
In my opinion the banks we speak about are partly to blame for extending our suffering. They have ducked and dive for 34 years and this was to Mugabes whims. Had they closed shop during the hardest of times these clowns would have been history. They kept on thinking things would change. They would of been back operating in a decent country. Anyone that thinks that Obert Mpofu has his fortune in his bank or Mugabe banks with indigenous banks is mistaken. All the Banks that were controlled by these thugs have collapsed or failed or bailed out at some time or the other.
Societies usually let ascend to the top those among them that most closely mirror their collective character: Thieving, selfish, reptilian cowards. They sustain a sense of self-worth through how others suffer. The PHD (Pull Him Down) syndrome is a Zim character. We scour the papers for news of who has met his demise lately – and gloat. We indulge in petty consumptive displays of wealth just for show. We don’t invest or maintain our assets. We trash our institutions and replace them with personalities, some murderers, others thieves, some promiscuous. “Don’t bother my Africans with democracy. When you give them a President they will always turn him into a chief” – Ian Smith. We have no enduring values. THAT is our lot. We deserve us.
I remember reading about ten years ago that Barclays ring fenced it’s Zimbabwe operation from the rest of the Barclays group, something they did not deem to be necessary under UdI.;_
I propose Muggerbank!
Agreed!
second your proposal Johno!!!