Govt privatises Agribank

the bank’s long-drawn-out privatisation. Agribank is among 10 parastatals the Government earmarked for privatisation in 2010.
Agribank strategy, marketing and business development director Mr Joseph Mverecha said: “The Government has commenced the privatisation of Agribank, currently in progress in accordance with the Cabinet approval of May 2011.
“Currently, the Government has floated a tender for the financial advisor, to be followed by subsequent steps, culminating in the choice of a suitable strategic partner.”
According to Mr Mverecha, a number of potential investors eyeing Zimbabwe’s agricultural sector have taken aim at the bank.
“There are indications that several investors taking a long-term view of the economy, the central role of agriculture in the economy and the strategic role of Agribank at the heart of agriculture and agro-based manufacturing production value chain — these investors have shown interest and will get opportunity to expressly take up equity in the near future.
“In addition, international investors, cognisant of the uncertain global food supply are keen to invest in a strategic institution that has a longstanding                            history of supporting agriculture and food production.”
The Government is set to dispose 49 percent of the bank’s shareholding to a new foreign partner, which is in line with the requirements of the country’s indigenisation law.
According to the Government Gazette of March 16, 2012: “. . . bidders should exclude banking institutions operating in Zimbabwe or having interest in banking institutions operating in Zimbabwe.”
The bank is presently wholly owned by the Government.
“Under the privatisation programme, Government will retain 51 percent shareholding while disposing 49 percent shareholding to a strategic partner,” said Mr Mverecha.
Although, wholly owned by the Government, the bank’s shareholding is split 50:50 between the Ministry of Agriculture and the Ministry of Finance.
It is therefore not clear how the Government plans to split the equity between the two ministries when its shareholding is slashed to 51 percent.