malvernmugadzikwa
Michael Tome
PEOPLE’S Own Savings Bank (POSB), has hinted at concluding its partial privatisation project by end of 2023 in tandem with the Government’s parastatal reforms agenda that is guided by the Short to Medium Term Reform Framework (SEPs-SMTRF).
The bank has since presented the final partial privatisation strategy document to the Minister of Finance and Economic Development, Professor Mthuli Ncube, who then requested for a more comprehensive document inclusive of the recommended strategic investor.
POSB is one of the state entities earmarked for partial privatisation by the Government.
The programme intends to bring about engagement of strategic partners not only for POSB, but several state-owned entities (SOEs) like the Infrastructure Development Bank of Zimbabwe (IDBZ), and firms under the Industrial Development Corporation (IDC).
In the full-year financial results to December 2022, POSB acting chairman, Israel Ndlovu, said the bank engaged KPMG Advisory Services to provide transactional advisory services.
“At the time of preparing this report, the consultants were in the process of attending to the outstanding work streams and deliverables which include the Minister’s request. It is anticipated that the partial privatisation project will be concluded by the end of the year 2023,” said Ndlovu.
Mthuli is on record saying the privatisation issue for selected SOEs should be finalised. In his 2023 National Budget statement, Mthuli noted that Government will be prioritising the parastatal reforms agenda this year guided by the National Development Strategy 1 (NDS1) as authorities strive to moderate the enterprises load on the fiscus and promote efficiency.
“Drawing lessons from the successes and challenges faced in implementing the SEPs-SMTRF since 2018, it is envisaged that the state enterprises reform priorities for 2023 will be guided by the completion of the ongoing reforms,” Mthuli
The drive also envisages the merger of Powertel, Zarnet, and Africom while the Broadcasting Authority of Zimbabwe (BAZ) will be integrated with the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).
In terms of performance in the year to December 2022, POSB recorded a profit of $2, 34 billion in inflation adjusted terms while net operating income increased by 74 percent to close the financial year at $18, 99 billion attributable to inflation yields on financial assets.
Resultantly, the bank managed to declare a dividend totalling $145,257,029 at an Annual General Meeting held in August 2022.
In the period under review, POSB’s total assets value surged by 35 percent to $39, 37 billion in inflation-adjusted terms, from $29, 06 billion in 2021.
However, operating expenses grew significantly to end the financial period at $14, 60 billion from $7, 56 billion in 2021 translating to a 93 percent jump in inflation adjusted terms attributable to a general rise in prices stemming from inflationary pressures.
The bank’s capital adequacy stood at 62 percent against the minimum regulatory ratio of 12 percent.
In the year POSB appointed Garainashe Changunda as its substantive chief executive officer from February 01 2023.
Changunda who was the bank’s acting CEO since November 2022, took over from Admore Kandlela, who retired from the bank late last year after nearly two decades at the helm of the institution. To hit the ground running, the new CEO is superintending over aggressive deposit mobilisation initiatives as the bank moves to grow it’s business and competitiveness in the sector as well as enhance internal operations. As such, the Bank was on boarded on the Zeepay bulk payment processing system which allows it to send and receive banks bulk payment files for processing.
During the year the bank initiated various corporate developments which included the Mastercard project allowing both local and international payments, introduced USD credit and savings products.
In partnership with Mastercard, a global technology company in the payments industry the bank also unveiled prepaid and debit gold Mastercards that will enable customers to seamlessly process domestic and international transactions. It also introduced the Omni-Channel project which encompassed the development of a mobile banking service to improve customer experience including online banking self-registration.
The bank also took new billers on board for the institutions to facilitate payments on available digital banking platforms and these include Gweru City Council, Dandemutande, Utande, and Nyaradzo.
In a bid to decongest its banking halls, the bank introduced Enhanced Queue Management System and alternative pay points initiative targeted at NSSA and Government pensioners. This was designed to arrange for convenience, especially for pensioner customers who still prefer cash withdrawals.
“The initiatives are meant to improve customer experience, the mobile banking application was upgraded to a flutter application with a new modern look and feel. These enhancements allow customers to pay their respective billers directly from their accounts via the digital payment platforms.
“The bank also widened its agency banking scope by adding Mama Money (Money Transfer Agencies) to the international money transfer services to cater for the increase in diaspora remittances,” said Changunda.
Furthermore, the bank moved to set up shop in 143 Zimpost agencies across the country to complement its countrywide branch network of 32, of those 143 Zimpost offices 28 are now being used as Alternative Payment Sites during pensioners pay days. POSB also highlighted that it is well positioned to take advantage of significant growth opportunities along its footprint as it expects improved economic performance in 2023 buttressed by a better agricultural season, increased mining output, slowing inflation and the easing of Covid 19 restrictions.
The Government controls 100 percent shareholding in POSB, which is currently undergoing processes to open up its ownership to the private sector under a privatisation programme.
Bongani Ndlovu