adminLovemore Kadzura Business Correspondent
TWO multinational banks, Barclays and Standard Chartered, have ceased their business operations in Rusape, leaving the growing town without an international bank. This has left people of Rusape in need of international banking services to travel 90km to Mutare or 70km to Marondera, a situation described by many as sad.
Barclays, which has an on and off relationship with the town, was the first to close its branch in November last year and Standard Chartered has since given notice that it will be winding up its operations on April 1, 2015.
Businessman, Mr Patrick Sagandira, believes Rusape has been dealt a huge blow by the departure of the two banking institutions, saying such developments send wrong signals to potential investors.
“This is a very sad development for our town. We have been dealt a huge blow. We can’t continue calling us a town when we don’t have international banks operating. Such big banks are needed because they help to woo big investors in the town. If an investor wants to come here, he considers issues such as water, electricity and the nature of banks available.
“It will be more expensive to transact internationally because you have to travel to Mutare or Marondera to access international banks. Right now we have people buying second-hand cars online and those who were transacting using one of the banks have been greatly affected.
“Whether they are cutting costs or deposits were declining, it is a matter for another day. Our town intends to apply for municipal status in the near future and types of banks in the town are also a consideration for that application to succeed,” he said.
The two banks join the growing list of companies that have left the town in the past year that include TN Bank, PG, Spar, Pelhams, Devchands Wholesalers, Altfin insuarance and other small businesses. Several businesses have retrenched, with most of them operating with skeleton staff and the informal sector is now dominating.
The situation is not all gloomy as other big names have opened in the town including N. Richards Wholesalers, Metro Peech, TV Sales and Hire, MFS Hardware and Golden Crust, a fast food company operating two outlets.
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