AfrAsia Bank to focus on profitable business lines

Harare Bureau
AfrAsia Bank Limited’s (ABL) says it has divested from Zimbabwe operations to refocus on profitable business lines.

The group ceased operations in AfrAsia Bank Zimbabwe Limited (ABZL) last week and the Reserve Bank of Zimbabwe (RBZ) has since cancelled the banks operating licence.

In a statement, Group CE James Benoit said the difficulties that ABZL was facing arose primarily from legacy issues within the bank and the difficult economic environment within the country.

“Zimbabwe has been going through an economic slowdown due to liquidity challenges and a fragile global financial environment.

“ABL will continue to focus its efforts on its profitable core business lines and regional expansion as part of its strategic vision,” he said.

Benoit said discussions with one international investor had reached an advanced stage but the group was unable to get through to a conclusive agreement on satisfactory terms and conditions,” he said.

He said the termination of ABZL’s banking activities in Zimbabwe will not affect in any manner whatsoever the operations, clients and commitments of ABL in Mauritius and other parts of the world.

“AfrAsia Bank Limited remains a financially solid institution, well capitalised with strong local and international shareholders,” he said.

Benoit said the group has over the past months, been working diligently to shore up liquidity and capital, in order to provide tangible and sustainable solutions to the current situation faced in Zimbabwe.