Published: 17 March 2014

Foreign banks are yet to comply with Zimbabwe's indigenisation policy due to authorities' delay in approving their compliance plans, the Bankers Association of Zimbabwe says.

This is despite government's pressure for the institutions to conform to the law compelling foreigners to cede majority shareholding to black locals - with former empowerment minister Saviour Kasukuwere having given them several ultimatums.

George Guvamatanga, BAZ's president, said the foreign-owned financial institutions are currently in negotiations with the Indigenisation and Finance ministries, and the Reserve Bank of Zimbabwe.

According to BAZ, there are 21 banks operating in the country, 16 indigenous and five foreign-owned.

The foreign banks include Barclays, Standard Chartered, Stanbic, AfrAsia and MBCA.

Struggling locally-owned banks have failed to survive the prevailing economic environment, forcing some of them to engage foreign investors, going against the tenets of the Indigenisation and Empowerment Act, a Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment heard was told on Friday.

Presenting oral evidence to the committee, Bankers Association of Zimbabwe president George Guvamatanga said since the enactment of the black empowerment law, 2 local banks have turned their shareholding structure in favour of foreigners.
- dailynews

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