Indigenisation reaches the banks

The Minister of Indigenisation and Economic Empowerment, Saviour Kasukuwere, will soon meet with local foreign-owned commercial banks to tell them about their new indigenisation levels and requirements.

Godfrey Sigobodhla, Director of Indigenisation and Empowerment in his ministry, this week said: “Yes, we will soon set the indigenisation levels for all foreign-owned commercial banks operating in Zimbabwe. As you know we have already met with the mining industry and the manufacturing sector and their levels have already been set.

“We will soon set new levels for commercial banks. I know the figure, but I cannot tell you right now.”

He said that some businessmen were confused about the figures, with some saying that $1 million turnover was the requirement for indigenisation. “This is not true because the general figure right now is US$500 000 and not US$1 million,” he said.

The three foreign-owned commercial banks operating in Zimbabwe right now are Barclays Bank of Zimbabwe Limited (Barclays), Standard Chartered Bank of Zimbabwe Limited (Stanchart) and Standard Bank of Zimbabwe Limited (Stanbic Bank).

Barclays and Stanchart have their Head Office in London, while Stanbic’s is in South Africa.

Commercial banks led by indigenous Zimbabweans are worried about the new requirements that state that at least 51 percent should go to locals. “There is no reversing this issue,” Sigobodhla said.

Post published in: Business

Leave a Reply

Your email address will not be published. Required fields are marked *