Breaking News

Gono lends his support to Kasukuwere

by Staff reporter
01 February 2013 | 3609 Views
RESERVE Bank governor Gideon Gono yesterday made a dramatic about-turn on the country's drive to indigenise the financial sector, lending his support to Indigenisation and Economic Empowerment minister Saviour Kasukuwere with whom he had been openly sparring over the issue.

Announcing his monetary policy statement for 2013 in the capital yesterday, Gono, who previously had been adamant the banking sector was a sacred cow that should not have been included in the ongoing radical transfer of economic power into the hands of the black majority,  showed he had yielded to the political pressure he has been facing from Zanu PF, which has been having an upper hand in the unity government.

"All banks should observe the laws of the country including the Indigenisation and Economic Empowerment laws. In this regard, the Reserve Bank is working together with the Ministry of Indigenisation and Economic Empowerment to ensure that compliance with appropriate laws is done in an orderly manner," Gono said yesterday.

He however stressed that the process to indigenise the banks should take cognisance of the sensitivities around the operation of the banks to restore confidence, trust and stability in the sector.

Nonetheless, the governor could be taking his last stand by demanding that all indigenisation transactions that involved notion vendor finance for the new black shareholders obtain his approval.

The  transactions, which have been dubbed successful by some sections of the financial markets, could be in danger of being labelled null and void if Gono disapproves of them in the interests of curtailing further national debt.

The country's Indigenisation Act compels foreign owned firms to sell 51% of their stakes to local entities. In the absence of credit lines willing to fund the sale of the stakes, the companies and the ministry of Indigenisation have an agreement that the stakes would be sold through notional vendor financing (NVF).

NVF is credit provided by the supplier, normallly in the form of deferred payment terms, usually over 10 years or so. This means indigenous entities contracted commercial debt from the companies which they have now taken over.

However, Gono said there were laid down procedures in the contraction of credit lines which strictly requires the approval of  the External Loans Coordination Committee.

The contraction of credit lines and loans in Zimbabwe are undertaken through the ELCC as it has been empowered by government to use stipulated guidelines in debt contraction with a view to monitoring the country's indebtedness to the rest of the world.

Gono noted there had been incidents where credit lines were contracted on behalf of government outside the purview of the ELCC or involvement of the RBZ.

"Against this background all institutions, both in the private and public sectors, need to send their loan applications through the ELCC for prior approval."

Gono said this applied to various vendor financing schemes that had emerged over the recent past Zimbabwe Independent is reliably informed that Gono is currently in the process of granting ECCL approval to the transactions in the same as he had already approved that of Blanket Mine.

Blanket Mine was the first company to receive an indigenisation compliance certificate.





Gono Kasukuwere

Source: independent

Comments

Latest News

Victoria Falls to house arts unversity - Government is planning to se...

by Thobekile Zhou | 04 May 2016 | 238 Views

Zimbabwe parliament building risked explosion - Speaker Mudenda - Parl...

by Thobekile Zhou | 04 May 2016 | 515 Views

West Hands Off Zimbabwe's Internal Affairs - Diplomat William M. Bella...

by Sparkleford Masiyambiri | 04 May 2016 | 407 Views

ZimPF has nothing to offer to Zimbabweans - Little known Zimbabwe Peop...

by Peacemaker Zano | 04 May 2016 | 336 Views

ZANU PF has not failed workers - It is a fascinating paradox to say th...

by Stewart Murewa | 04 May 2016 | 328 Views

Govt struggle to kick-start school feeding project - The much talked a...

by Thobekile Zhou | 04 May 2016 | 279 Views

'Hostile lynch mob' bays for Bulawayo Mayor's blood

by Thobekile Zhou | 04 May 2016 | 524 Views

BCC officials embark on investment and twinning trip to China - Five t...

by Thobekile Zhou | 04 May 2016 | 318 Views

BCC deny War Vets ministry land - Bulawayo City Council has declined t...

by Thobekile Zhou | 04 May 2016 | 412 Views

Zimbabwe enforces usage of South African Rand - The Reserve Bank of Zi...

by Staff reporter | 04 May 2016 | 1994 Views

'Mnangagwa is unelectable' - The boycott by workers of the government-...

by Staff reporter | 04 May 2016 | 1015 Views

MDC-T sends confusing signals, upholds poll boycott stance - Morgan Ts...

by Staff reporter | 04 May 2016 | 531 Views

Demo against national pledge banned - Police here banned the first ant...

by Staff reporter | 04 May 2016 | 666 Views

Mnangagwa's wife lands top Pan African Parly post - Chirumhanzu-Zibagw...

by Staff reporter | 04 May 2016 | 756 Views

Rueben Barwe's wife dies - The Zimbabwe Broadcasting Corporation has p...

by Staff reporter | 04 May 2016 | 2097 Views

Mugabe's ex-teacher dies

by Staff reporter | 04 May 2016 | 1365 Views

RBZ sets withdrawal limits - The Reserve Bank of Zimbabwe has introduc...

by Staff reporter | 04 May 2016 | 1501 Views

Harare councillor dies

by Staff Reporter | 04 May 2016 | 2997 Views

True Christians created to rule

by Khumbulani Maphosa | 04 May 2016 | 1314 Views

Female cop begs colleague to wear condom before being raped - A female...

by Staff rerporter | 04 May 2016 | 10104 Views

Mphoko, Mnangagwa fight over Joshua Nkomo

by Staff reporter | 04 May 2016 | 6245 Views

Watercolor artist to showcase artwork at Zim Achievers

by Tidi Kwidini | 04 May 2016 | 1157 Views

Bosso top striker dragged into match-fixing scandal - HIGHLANDERS top ...

by Sports writer | 04 May 2016 | 3687 Views

Addressing people's anger is the answer, not muzzling the media - As t...

by Tendai Ruben Mbofana | 04 May 2016 | 1256 Views

Obscure multi-currency usage blamed for cash shortages -RBZ - The Rese...

by Staff reporter | 04 May 2016 | 2161 Views

Queen Elizabeth's mother visited disputed top Mugabe's aide farm - COL...

by Itai Mushekwe | 04 May 2016 | 3703 Views

MP Cross calls for alignment of 400 Acts to new constitution - to what...

by Wilbert Mukori | 04 May 2016 | 970 Views

First Sci-fi novel in Shona relaunched - Muna Hacha Maive Nei? The fir...

by Belontos Books | 04 May 2016 | 791 Views

Entertainment

Dr Rebecca Malope to perform in Birmingham

by Admore Tshuma | 04 May 2016 | 245 Views

Charambas to unleash new gospel videos - Gospel music star Charles Cha...

by Staff reporter | 04 May 2016 | 442 Views

Tupac's mother, Afeni Shakur Davis, dies at 69

by Staff Reporter | 04 May 2016 | 2184 Views

'Ekhweni lami' a classic value for money project

by Vusmann | 03 May 2016 | 1379 Views

Macheso relishes SA tour - "We have performed in South Africa before, ...

by Tawanda Marwizi | 03 May 2016 | 1491 Views

Maita crowned Miss Africa Zimbabwe - Harare beauty, Maita Kainga was c...

by Bongani Ndlovu | 02 May 2016 | 2115 Views
iBlog

Five Reliable Outlook Pst File Repair Tools

Outlook pst files can become corrupted -- and when that happens, work grinds to a halt. if your organization relies on outlook, one of these tools could save the day. outlook is the industry standard groupware tool. let's take a look at five that can... Read More
ITnews 04 May 2015 ago

What To Look For In Video Converter Software

looking for the best video converter software? you have to compare different video converters before making a purchase.the ability to watch video on different types of devices is a wonderful thing. not so wonderful are the compatibility issues that ... Read More
Sergey 19 June 2015 ago