Maravi

(NEWZIMBABWE) Zim rejects Barclays, Stanchart offers

Zim rejects Barclays, Stanchart offers
12/12/2011 00:00:00
by Gilbert Nyambabvu

THE government has told British banks, Barclays Plc and Standard Chartered Plc to stump-up more after rejecting as inadequate their plans to cede 10 percent stakes as part of efforts to comply with the country’s empowerment laws. Empowerment Minister, Saviour Kasukuwere said Monday the offers by the two UK banks were "paltry", adding discussions would however continue with thetwo banks.

"We have said to them the fact that you are giving us carrots does not change the law," he said. "If they had that (10 percent) proposal some 5-7 years ago we shouldn't be talking about indigenisation."

South Africa's Standard Bank Group presented a more "comprehensive plan" for its Stanbic Zimbabwe operation which the government was reviewing, Kasukuwere said.

President Robert Mugabe's drive to force foreign companies to surrender at least 51 percent shares to locals has unnerved overseas investors and further divided his the coalition government formed in 2009 with long-time rival and, now, Prime Minister Morgan Tsvangirai.

Tsvangirai recently blasted the policy claiming it would not help solve the country’s unemployment crisis.

"Jobs are created by ensuring that you increase the size of the cake not shrinking the small cake,” the MDC-T leader told supporters at a recent rally in Plumtree.

“Jobs are not created by forcibly taking over part of established companies, but by ensuring that there are more companies opening. That’s where we differ with Zanu PF on indigenisation.”

Central Bank chief, Gideon Gono has also urged a re-think of the policy arguing the model being pursued by the government would only benefit a few.

But Mugabe vowed to press ahead with a programme at the just-ended Zanu PF national conference in Bulawayo.

"We will not reverse this policy. Let no one deceive themselves that it's devised for the elections. No, it's a fundamental policy," Mugabe said.

Labels: BARCLAYS BANK, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), NEOLIBERALISM, SAVIOUR KASUKUWERE, STANCHART

posted by MrK @ 6:24 PM