Honour your pledge, Govt urges Stanbic

ANZ Grindlays (Zimbabwe) in 1993 as part of its compliance with the indigenisation and economic empowerment regulations.
In a letter dated August 17 2011 addressed to Stanbic Bank chairman Mr Sternford Moyo, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said this was in keeping with the principle of localisation of equity.
The agreement stated that the 30 percent equity would be sold to a broad spectrum of indigenous Zimbabweans including employees and management and other interested indigenous Zimbabweans.
Further to this, the minister said the provisional indigenisation plan for Stanbic would only be approved if it also provides an additional 10 percent equity to a broad spectrum of indigenous Zimbabweans within a period of one year from the date of the agreement.
“We require a total of 40 percent direct equity participation by indigenous Zimbabweans in Stanbic Bank,” Minister Kasukuwere wrote in the letter to the bank.
Another condition for approval is for the bank to enhance the empowerment of indigenous Zimbabweans through the injection of at least US$1 billion into the local economy within a period of five years.
Besides Stanbic Bank, other foreign-owned banks that submitted indigenisation plans are Standard Chartered Bank and Barclays Bank. Last week the two banks were given a two-week ultimatum to show cause why the minister should not revoke their licences after their plans fell short of the minimum requirements.
Under the Indigenisation and Economic Empowerment Act, foreign-owned companies are required to submit indigenisation plans detailing how they intend to meet 51 percent direct equity participation by locals within five years.