$1bln moved offshore ahead of July polls

via $1bln moved offshore ahead of July polls 08/11/2013  by The Source NewZimbabwe

CLOSE to $1 billion was funnelled from Zimbabwe’s banking sector to offshore accounts in the run-up to the July 31 general elections as political uncertainty gripped the economy, worsening liquidity conditions in the market, a senior banking official has said.

President Robert Mugabe and his Zanu PF party claimed a resounding victory in the polls, a result which has been challenged by the Morgan Tsvangirai-led MDC in the courts.

“By the end of June $800 million left the country due to elections,” BancABC chief operating officer Francis Dzanya said during the banking group’s financial results presentation on Wednesday.

Dzanya added that the banking sector was battling worsening liquidity conditions.

The group’s chief executive, Douglas Munatsi said there was need to divert attention from the elections and focus on developing business.

“Whichever way things go, business needs to engage the new government,” Munatsi said.

Munatsi said he welcomed the pledge by Zanu PF to retain the multi-currency system and urged the new government to keep inflation in check and said there was also need for policy clarity on the indigenisation law which requires foreign companies to cede 51 percent to locals.

“We cannot run the US dollar economy like the Zimbabwe Dollar era. We need a disciplined approach to spending,” he said.

ABC Holdings attributable profits to shareholders grew by 155 percent to 143 million Botswana Pula for the year ended June 2013 from P56 million last year driven by the growth in retail banking. Total income for the period increased 47 percent to P701million driven by its operations in Botswana, Zambia and Zimbabwe.

“The good performance affirms the strategy that was taken a few years ago to convert the business from a purely wholesale bank to a universal bank,” Munatsi said.

Deposits increased to P10.9 billion from P10.7 billion last year.

BancABC Tanzania continued to pose major challenges for the group resulting in its balance sheet being recently restructured. All non-performing loans were warehoused in a non-bank subsidiary while fresh capital was injected into the operation.

“Therefore, the group is cautiously optimistic that its combined business in Tanzania will break even in the second half of 2013,” he said.

BancABC Botswana recorded an increase of 127 percent in attributable profits driven by an increase in net interest income from consumer lending and loan schemes in retail banking.

BancABC Mozambique’s profitability decreased 32 percent to P 9 million.

This was mainly due to an increase in impairments and higher operating expenses.  Banc ABC Zambia’s profitability grew 94 percent to P33 million.

BancABC Zimbabwe’s attributable profits of P48 million was lower than P50 million achieved in the prior year. This was mostly due to a P55 million impairment in respect of one unnamed customer.



  • comment-avatar
    Angel 9 years ago

    Mugabe attacked the West for having a hand in Zimbabwe’s ills. For all the years he has done this, one would have thought Mugabe wants nothing to do with the West, especially Britain. Unsurprisingly enough, Mugabe suffers colonial last in his personal life and order as we saw him arriving in a vintage British Bentley surrounded by police on horseback wearing colonial style pith helmets. He failed to mention the scourge of corruption that has resulted in Zimbabweans living in sham conditions. As we speak, the cities of Bulawayo and Kwekwe have gone for many weeks without proper water supplies reflecting Mugabe’s mismanagement. While others may feel that it is not Mugabe’s problem, under his watch corruption has taken root in our country and those responsible seem to have unending impunity.

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    BossMyass 9 years ago

    Nothing good has ever come from something white.White is a troublesome plague on our revolutionary nation and therefore everything that is colored white must go.White is a troublesome plague on our revolutionary nation and therefore everything that is colored white must go.Mugabe added that he thinks fellow African leaders in neighboring countries such as South Africa, Mozambique, Namibia, Botswana and Angola should follow his lead and also ban the “colonial color”. When asked if the proposed ban on white was motivated by racism toward white people – who still make up a small minority of Zimbabwe’s population – Mugabe dismissed the idea outright.“It’s ridiculous to call me a racist. One of my best friends is white,” Mugabe said. “He’s from Switzerland and he helps me hide all my money.”

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      Fallenz 9 years ago

      Yes, white is awful… almost as bad as green… we really hate the US dollar!

      (‘Course, most I’ve handled in Zim are so faded, it’s hard to tell what colour they are. Somebody send me new ones… Quick!)

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        Pastor 9 years ago

        If the soul is left in darkness, sins will be committed. The guilty one is not he who commits the sin, but the one who causes the darkness. All violence is the result of people tricking themselves into believing that their pain derives from other people and that consequently those people deserve to be punished.If, before every action, we were to begin by weighing up the consequences, thinking about them in earnest, first the immediate consequences, then the probable, then the possible, then the imaginable ones, we should never move beyond the point where our first thought brought us to a halt. The good and evil resulting from our words and deeds go on apportioning themselves, one assumes in a reasonably uniform and balanced way, throughout all the days to follow, including those endless days, when we shall not be here to find out, to congratulate ourselves or ask for pardon, indeed there are those who claim that this is the much talked of immortality.

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    Ironically banker whistleblowers state most was zanu looting of the likes of kaukonde chiyangwa mujuru mliswa gono himself mpofu militfy etc

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    Tjingababili 9 years ago

    Compliments of ZANUPF! Well done, boys and girls!

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    Doris 9 years ago

    And despite that, surprisingly, some offshore banks are telling Zimbabwean clients that they must take their accounts and go elsewhere with them. “We are no longer dealing in Zimbabwe”. Why? Well, they don’t mind putting money into Zim but are not prepared to take the risk of handling money that has been laundered from illegal diamond and gold dealings. Also, the Arms Factory has a lot to do with it. Think again Comrades – your money isn’t always safe offshore and in Switzerland.

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    “Over 1 billion moved out of Zimbabwe”. Zvinoitwa nema “leaders” enyu aya, pamunenge makarara!

    Vanhu woye, vhurai maziso. Chikara ichi chiri kushandira ani? Iwe nevana vako here? Tax yako iri kuendepi? Honaiwo kuti unotorerwa PAYE pamwedzi wega wega, wozobhariswa VAT paunotenga zvese zvaunotenga, wobhadhariswa AIDS LEVY, wo bhadhariswa fuel levy, wozo bhariswa income tax. Kozouya mari dzema minerals. Mari dzese idzi dzirikuendepi? Manje manje kuchabuda kolera. Asi ivo vakagara kwavo uko muPAGODA!

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    Well tsvangisai did a good job in conning the nation into believing the zim dollar is going to be reintroduced come June 1……has anyone stopped to think how much damage the opposition has done in its constant efforts at creating a negative perception of zim??

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      Fallenz 9 years ago

      Too overshadowed by the overwhelming enormity of ZANUPF corrupt dealings. You are unable to see the forest for the bushes… or is yours a case of willfully ignorance… or perhaps you aren’t ignorant at all, and simply a ZANUPF apologist/spin-artist trying to divert attention from the gross corruption that ZANUPF has committed and continues.

      Personally, I don’t think you either blind or ignorant… you just a racist thief looking for more loot from illegal diamond and gold dealings, swiping aid funds, and pilfering tax money from government coffers while millions go hungry. You a disgrace to Zim and humankind.

      Tell me, what kind of defense do you and your ZANUPF mates plan for when you are judged for your actions after you die, and all the grief you caused is behind you… because you’ll be facing grief like you never imagined for forsaking goodness and the God who sees all, even knowing your thoughts. You be in reeeeally deep do-do, bud.

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    munzwa 9 years ago

    The author of this article says the business community should engage the Govt!! surly the other way round!!!Interesting all the figures quoted in Pula etc and mention of the regional economic growth but not here in Zim.

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    Urimhata Rob

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    Jambanja paSalisbury 9 years ago

    This Dzanya says the new Govt needs to keep inflation in’check’! They need to, but are they capable to? Now look at the odds: 1) No clear monetary policy because we are using other pple’s currencies hence setting interest rate regimes is complicated 2) Closure of industries creates shortages hence prices are set to rise 3) Imports are denominated in USD terms while the majority of our imports come from RSA hence any changes to RSA inflation will cascade into Zim inflation variations 4) FDI was a mere trickle and has almost dried up 5) Companies are closing down dealing major blow to agggregate supply side and the fiscus hence Gvt deficit will grow…..Zvakaoma kutasva bhiza usina kubata matomu, unodonha chete!

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    Chivulamapoti 9 years ago

    BossMyAss, weddings are white, it takes white light to see the other 7 colors and the Pope’s robes are white! And here is Rob worrying about the MDC, while Zimbabwe burns! What a fool!
    Pastor – I do believe you landed on the wrong web site, this is ‘Zimbabwe Situation’, not ‘The Chrystal Palace Bible Hour’.

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    Pastor 9 years ago

    Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.When you share your last crust of bread with a beggar, you mustn’t behave as if you were throwing a bone to a dog. You must give humbly, and thank him for allowing you to have a part in his hunger.I think behind closed doors people behave differently no matter what period we’re looking at, because people have to stand up straight in public but can slouch behind closed doors – can you imagine wearing those corsets?There’s a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave.The corruption of people is to behave in an inhuman way.It matters more how governments behave than how big they are.You don’t think about it at the time, but there are certain responsibilities that come with being the vicar’s daughter. You’re supposed to behave in a particular way. I shouldn’t say it, but I probably was Goody Two Shoes.