Breaking News

Gono lends his support to Kasukuwere

by Staff reporter
01 February 2013 | 4461 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

Should Miss World Zimbabwe have been dethroned?

Yes
31.2%
No
64.14%
Not sure
4.66%
343

Comments

News Updates

Email:

Latest News

Mugabe splurges $50 million on military vehicles

by Staff reporter | 31 July 2015 | 692 Views

Mutasa savages wasteful Grace Mugabe

by Staff reporter | 31 July 2015 | 709 Views

Gamatox 2 brewing, says Jonathan Moyo

by Staff reporter | 31 July 2015 | 977 Views

'I've no presidential ambitions,' says Mphoko

by Staff reporter | 31 July 2015 | 390 Views

Govt imports 400 000 decoders from China

by Staff reporter | 31 July 2015 | 614 Views

China tells Zimbabwe to repay $1.5 billion

by Staff reporter | 31 July 2015 | 575 Views

Mzembi breathes fire

by Staff reporter | 31 July 2015 | 401 Views

Obert Mpofu washes his hands

by Staff reporter | 31 July 2015 | 462 Views

Moyo admits ZimAsset failure

by Staff reporter | 31 July 2015 | 400 Views

Mugabe urged to stop assault on vendors

by Staff reporter | 31 July 2015 | 314 Views

Mugabe honours champion Manyuchi

by Staff reporter | 31 July 2015 | 272 Views

Grace Mugabe bars Daily News from event

by Staff reporter | 31 July 2015 | 297 Views

Foreign funding: Zanu-PF not clean either

by Staff reporter | 31 July 2015 | 244 Views

Corrupt Zanu-PF executive ousted

by Staff reporter | 31 July 2015 | 357 Views

Muchinguri, Chingosho raped

by Staff reporter | 31 July 2015 | 550 Views

Innscor will not pay CTC penalties

by Staff reporter | 31 July 2015 | 211 Views

Mawindi tipped for top NetOne job

by Staff reporter | 31 July 2015 | 280 Views

Harare hits back at Zinara

by Staff reporter | 31 July 2015 | 264 Views

Mphoko sues Daily News for $50 Million

by Staff Reporter | 31 July 2015 | 437 Views

My Presidency Will Touch Lives and Turn Around Zimbabwe to Bread Basket of Africa

by Pastor Timothy J.M. Chiguvare | 31 July 2015 | 1055 Views

ZUJ baffled by journalists dismissals

by Stephen Jakes | 31 July 2015 | 414 Views

Residents resort to bush for toilets

by Stephen Jakes | 31 July 2015 | 558 Views

Harare council face pressure to replace suspended town clerk

by Stephen Jakes | 31 July 2015 | 624 Views

Zimbabweans blamed for crime increase in Hillbrow SA

by Stephen Jakes | 31 July 2015 | 1499 Views

Zimbabwe man charged with murder of nurse in the UK

by Staff reporter | 30 July 2015 | 2533 Views

'People can kill each other for animals'

by Staff Reporter | 30 July 2015 | 2591 Views

Take Mliswa, Jabulani Sibanda on the house

by John Sigauke | 30 July 2015 | 4983 Views

Entertainment

Gwanda gospel music extravaganza confirmed

by Staff correspondent in Pretoria South Africa | 29 July 2015 | 2301 Views

Zim music industry dead - Prof Moyo

by Staff Reporter | 29 July 2015 | 3735 Views

Bev causes UK man to soil pants

by Bongani Ndlovu | 28 July 2015 | 7678 Views

Maskandi Mtshengiseni Gcwensa dies

by Stephen Jakes | 28 July 2015 | 5623 Views

Let me be! - Acie Lumumba

by TWZ | 28 July 2015 | 2989 Views

Bev returns home

by Staff reporter | 28 July 2015 | 6891 Views

Rapper Chad and Grammy winner Soko partner on EFT single

by Anashe Press Relations | 27 July 2015 | 3073 Views

All set for Chibuku Neshamwari National Finals in Bulawayo

by Thobekile Zhou | 25 July 2015 | 1933 Views
iBlog

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago

Greatsoftline For All Of Your Software Needs

coupon and promo codes: greatsoftline for all of your software needswhile some online sellers have promotional services that reduce the overall amount you spent, others do not .you need to be on the lookout for the best outlets in order to chase th... Read More
ITnews 25 February 2015 ago