SA banks comply with Zim indigenisation laws | Fin24
 
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SA banks comply with Zim indigenisation laws

Apr 01 2016 18:12
Malcom Sharara, Fin24's correspondent in Zimbabwe

Harare - All foreign owned banks operating in Zimbabwe have submitted credible indigenisation and economic empowerment plans in line with the March deadline.

According to a report by local news agency, Financial Express, all foreign banks including South African owned Stanbic (Standard Bank), MBCA (Nedbank) and CABS (Old Mutual) have submitted empowerment plans.

“I am pleased to advise that all the affected foreign financial institutions operating in Zimbabwe have submitted credible Indigenisation and Economic Empowerment plans before the 31st March 2016 in line with policy notice gazetted by the Minister of Youth, Indigenisation and Economic Empowerment,” said a statement released by Minister of Finance and Economic Development Patrick Chinamasa.

He said the plans submitted are promotive of socially and economically desirable objectives and goals as set out in the gazetted indigenisation framework.

“The submitted plans are consistent with the letter and spirit of the Indigenisation and Economic Empowerment Act and in line with the aspirations of ZimAsset (Government’s economic blue print),” said Chinamasa.

Fin24 understands foreign banks will be given empowerment credits for lending to sectors such as agriculture, SMMEs, Youth Programmes, women's programmes and low cost housing among others.   

According to the Financial Express, total credits towards attaining the 51% indigenisation and empowerment threshold should amount to 31%, leaving foreign banks with an outstanding 20% still to be indigenised.

Apart from South African owned banks, other notable foreign banks operating in Zimbabwe are Barclays Bank, Standard Chartered Bank, Ecobank, and BancABC.

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