Poverty won't go away by itself
By Editor
Fri 12 July 2013, 14:00 CAT
MIKE Rees, Standard Chartered Bank group executive director - wholesale, says despite strong economic performance, many African countries are experiencing 'jobless growth', especially among the young.
Rees says "the current economic boom across the continent offers an opportunity to change this and lift millions of Africans out of poverty, but it won't happen by itself. Tackling this desperate issue, ensuring that growth produces a dividend of opportunity and jobs for people should be top of mind for anyone interested in Africa's long-term future".
This is a very big challenge and there are many honest African statesmen who are not sleeping because of the distressing difficulties they and their people face today. They have done everything they have been asked to do by those who control the world economy, but still the great majority of their people are wallowing in abject poverty and unemployment. They are being told that their economies are growing at five, six or seven per cent but the poverty and unemployment is not accordingly reducing.
So many concessions have been given to transnational corporations to invest in African countries but still poverty and unemployment persists. But probably there is need to examine and re-examine where this growth we talk about is coming from. Over 60 per cent of our countries' export revenues come from the marketing of commodities. They have the worst lot in international trade.
The fact that there are very few of our countries with significant exports of manufactured goods, and that oil exporters are also a very small group, gives a clear economic picture of how we are dependent mostly on commodity exports - agricultural raw materials, mineral raw materials.
The question of commodities continues to be significant for our countries. It is needless to repeat well-known facts, such as the increasing substitution of synthetic products for natural commodities, which poses a constant threat to our economies. Their negative price-trend can be observed in both the short term and long term, although the trends in real prices over long periods are especially revealing and definitely challenge certain optimistic short-term perceptions generally held by economists of the developed world.
It is also a well-known fact that the share of the final price received by our countries from the marketing of commodities is extremely low.
In recent years, various studies, some of them carried out by the United Nations, have penetrated to a certain extent into the intricate manipulations of the transnationals, disclosing their harmful operations and their sophisticated techniques of exploitation. Although we are not against foreign investors and we actually seek and welcome them, it is impossible to avoid referring to the particularly harmful role played by these corporations in this field.
These huge transnational conglomerates which seek to establish their own peculiar international economic order, are by no means innocent of the erratic fluctuations in commodity prices and the minimum share of the final price we in the producing countries receive.
It should be recognised firstly that transnationals exert tremendous control over commodity marketing. Though widely known, this fundamental fact does not always receive the attention it deserves. Actually, all international trade in primary commodities exported by our countries continues under the transnationals' control.
The decision-making power of these corporations over price setting is such that any demand from us for the reassessment of our trade with a view to coping with unequal exchange must include - in order to be coherent and to get to the root of the problem - the eradication of transnational control over marketing and the transfer of trade mechanisms to our nations.
This overwhelming control is exerted by a few corporations which trade in more than one commodity.
Actually, these huge corporations set a price, takeover production and sell it at the established price in any quantity the market may absorb. These are the so-called "managed prices", fixed by the seller to maximise monopoly profits and thereby compensate, through large scale operations, for eventual drop in profits from one product by increasing profits on others, and also by shrewdly taking advantage of the inter-relationships of different products.
In this context, the well-known terms of trade indicators, based on usual trade statistics, can hardly express the real economic benefits for our countries, since a price increase under the prevailing conditions without eliminating the intervention of transnationals would only contribute a marginal share to the national producers, and would instead widen the gap between such producers and the increasing share appropriated by the transnationals.
For many years we have been crying about adding value to our raw materials before we export them but nothing much is happening in that direction. It is very difficult now to create many and meaningful jobs from the production of raw materials. Technology has improved greatly.
Even in the mining sector, fewer people are required to do a job because of the efficiency of the equipment being used. Mines are no longer employing as many people as they used to in the past. Even in large scale agriculture, jobs are not as many as they used to be. A few operators can plough, plant, weed and harvest an entire crop.
It is impossible to describe the international trade of our countries - be it in commodities or in manufactured goods - without finding in the transnationals and in the economic policies of the countries where the parent companies are based, the main obstacles to the development of our countries. To ignore the action of these conglomerates would be to follow the philosophy of an ostrich: burying one's head in the sand.
Without a coordinated strategy and concerned actions vis-à-vis transnational corporations, little progress would be achieved in steering away from the present catastrophic course in terms of trade expansion and the use of trade as a development factor. We are busy competing with each other for transnational corporations to come and invest in our countries. Some of our countries have declared huge parts of the country as economic zones where nothing or very little is paid in terms of taxes. We are losing out on meaningful taxes; our people are not getting the jobs we thought they would get from such investments and the benefits from exports are very limited.
And as Rees correctly observes, the quest to lift millions of our people out of poverty will not happen by itself. At the deepest point of our worst crisis, it is historically imperative for us - now more than ever before - to break the vicious circle of our trade inferiority and turn international trade into a true element for independent national development.
Labels: MIKE REES, POVERTY, STANCHART
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(BUSINESSDAILY KE) Zimbabwe moves to shut down Stanchart for non-compliance
Zimbabwe President Robert Mugabe. Zimbabwe has threatened to shut down British-owned Standard Chartered Bank and two mining companies that have not complied with its indigenisation laws. AFP
By KITSEPILE NYATHI, NATION CORRESPONDENT in Harare
Posted Monday, April 8 2013 at 12:25
Zimbabwe has threatened to shut down British-owned Standard Chartered Bank and two mining companies that have not complied with its indigenisation laws.
According to state media, the National Indigenisation and Economic Empowerment Board (NIEEB) has told Stanchart as well as foreign owned mining firms, Metallion Gold and Duration Gold that they will be closed down until they became compliant.
The transacting public was also ordered to stop doing business with the companies with immediate effect.
“Persons, businesses and government departments dealing with these companies are by this statement given notice of the intention of government to shut down these businesses until such time that they comply with the law,” the government owned Sunday Mail quoted NIEEB as saying.
President Robert Mugabe’s Zanu PF has been pushing a policy that compels foreign owned companies to cede 51 per cent of their local shareholding to indigenous Zimbabweans.
But the Reserve Bank of Zimbabwe governor Gideon Gono has resisted attempts to force foreign banks to comply with the law saying the sector is too sensitive.
Dr Gono’s stance has angered loyalists of the veteran ruler who say the criticism would harm his re-election bid as Zanu PF intends to use the empowerment programme to anchor its election strategy.
Empowerment minister Saviour Kasukuwere last week said the government was ready to shut down foreign banks that had not complied with the law despite concerns that Zimbabwe is starved of foreign investment.
“It is essential that any institution working in a given space be the one which is accommodative, which is supportive of the aspirations of the nationals,” he said.
“It would be a terrible thing for us to have institutions which oppose our aspirations in this country.”
Mr Kasukuwere said most banks had submitted empowerment plans to his ministry and they were being assessed.
“The banks must comply with our 51 per cent ownership threshold and they have brought their submissions to us,’ he said.
“Barclays Bank has done that while others are in the process of doing so, others have already submitted,” he said.
“Where we think that their submissions do not meet our expectations we have referred back to them to make the necessary corrections.”
Critics say the policy has slowed down foreign investment in Zimbabwe, a country that is recovering from a decade long economic collapse blamed on a violent land reform programme launched by President Mugabe at the turn of the millennium.
Labels: NATIONALISATION, STANCHART, ZIMBABWE
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(NEWZIMBABWE) Gono rules out Stanchart closure
09/04/2013 00:00:00
by Gilbert Nyambabvu
COMMENT - Gideon Gono, defender of Standard Chartered Bank.
RESERVE Bank of Zimbabwe (RBZ) governor Gideon Gono has warned the National Indigenisation and Economic Empowerment Board (NIEEB) against causing havoc in the banking sector and insisted that the British-owned Standard Chartered bank would not be closed.
The NIEEB warned the transacting public Last weekend against doing business with Stanchart – one of the country’s largest banks – saying the institution would be shut down for failing to comply with the country’s indigenisation programme.
“Persons, businesses and Government Departments dealing with these companies are by this statement given notice of the intention of Government to shut down these businesses until such time that they comply with the law,” the board was reported as saying.
But in a statement Tuesday, Gono said the threat had resulted in depositors rushing to withdraw their money from the bank.
“There are signs of instability and anxiety among stakeholders especially depositors who do business with Standard Chartered Bank Zimbabwe Limited,” said the RBZ chief.
“The instability is manifesting itself in the form of clients wanting to withdraw all their deposits from the Bank for fear that they will lose their hard-earned savings should the Bank be closed as has been threatened by the National Indigenization and Economic Empowerment Board officials at the week-end.”
He said threats directed at Stanchart could have wider consequences for the country’s fragile banking sector and the rest of the economy.
“Destabilising a large bank such as Standard Chartered has serious systemic consequences that can lead to unintended results which are opposite to those that we would have hoped to achieve,” he said.
“Standard Chartered Bank clients are advised to go about their business in a sober and normal manner because nothing of the sort which was announced by NIEEB officials is of any legal or practical effect.”
Foreign companies are now required by law to transfer at least 51 percent of their Zimbabwe operations to locals and the Empowerment Ministry has accused Stanchart of failing to comply with the legislation.
Empowerment Minister Saviour Kasukuwere said most of the other foreign banks – UK-based Barclays and the local units of South Africa’s Standard bank and the Nedbank group – had moved to comply with the requirement.
Gono however, assured depositors that Standard Chartered would not lose its operating licence over the issue.
He said: “All stakeholders of the bank and indeed, of other Banks are hereby advised not to panic or wantonly withdraw their funds from the Bank as the Central Bank which is the sole authority which issues and withdraws banking licenses from players in the Zimbabwean financial sector has not signaled any move in the direction intimated by NIEEB nor in any other way suggesting that Standard Chartered Bank will lose its business license for any reason in the near future.”
Gono and Kasukuwere have publicly bickered over indigenisation of the country’s banking sector with the RBZ chief counseling caution and warning against a “one-size-fits-all’ approach to enforcing compliance in the sector.
Kasukuwere has said foreign banks not willing to comply with the law are welcome to leave the country.
But Gono said indigenisation of the banking sector was still “work in progress”.
“We (RBZ) are for the orderly implementation of the Indigenization and Empowerment program as spelt out in the Empowerment and Indigenization Act Chapter 14:33 and the Regulations thereof, bearing in mind though that in implementing this law due regard and observation must be made of other pieces of legislation on our books which serve to complement or counter balance each other such as The Exchange Control Act and Regulations and The Reserve Bank Act Chapter (among others),” he said.
“The template of Zimbabwe’s indigenization and empowerment program is for all Zimbabweans to contribute towards its fulfillment in the best interests of the broad masses of identifiable beneficiaries and we believe that in the Banking Sector, it is still work-in-progress and no one should take precipitous positions that are to the detriment of the sector as a whole.”
Labels: GIDEON GONO, NEOCOLONIALISM, NIEEB, SAVIOUR KASUKUWERE, STANCHART
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BoZ finalises legal protection to guide currency rebasing
By Kabanda Chulu
Thu 18 Oct. 2012, 12:30 CAT
A BILL to give legitimacy and legal protection to guide the currency rebasing exercise has been finalised and will be taken to Parliament, says a senior Bank of Zambia official.
And Standard Chartered Bank is spending K5 billion on upgrading of equipment and software including training of staff and customers to ensure smooth transition to the use of new currency.
Officiating at the StanChart-organised forum for customers on the rebasing of the kwacha yesterday in Lusaka, Bank of Zambia currency rebasing project manager Morris Mulomba said technical guidelines had been issued to ensure the exercise was undertaken smoothly.
"Everything has to change and banks, including the public, they have to adjust to the system. So software, computers and various equipment will have to be calibrated to suit the rebasing of the kwacha," Mulomba said.
"To make things clear because there might be disputes on contracts, for example, if you pay rentals for K4,000,000, you will now pay K4,000, so a misunderstanding can arise but to give legitimacy and legal protection, we shall introduce the currency redenomination Act which the finance minister will be taking soon to Parliament since the Act has to be in place before January 2013."
He said the rebasing exercise had received positive response from people across the country.
"People now understand that this will be for their benefit, of course, there are concerns like people in rural areas will be defrauded during the changing exercise but we are still carrying awareness messages. And banks also complained that they didn't plan for calibration of equipment, but we have told them it is a minimal cost and it is a requirement to adjust."
And StanChart acting managing director Kelvin Musana said the bank was ready to support various policy measures that would translate into increased economic activity
"We have taken this initiative to host a series of workshops aimed at educating our clients, members of staff and the public on currency rebasing and we have set K5 billion for this project," said Musana.
Labels: BOZ, KWACHA, STANCHART
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Sata urges StanChart to increase lending to agriculture
By Staff Reporters
Tue 12 June 2012, 13:24 CAT
PRESIDENT Michael Sata has urged Standard Chartered Bank to increase lending to agriculture and expand its retail banking in Zambia.
President Sata said the small retail depositors and small-scale farmers were under-serviced by the banking sector in Zambia and that this worsened when
some big banks like Barclays and Stanchart closed most of their rural branches in the recent years.
President Sata said this when Sir John Peace, the chairman of Standard Chartered Bank Plc called on him in London yesterday.
"We need you to come to rural areas and help finance agriculture. It is the small retail bankers and farmers that generate the money that you lend to big businesses. We would like you to provide leadership in this area because you are a very stable bank," he said.
President Sata urged the bank to take advantage of the attractive liberal incentive structure of the Zambian economy.
"Our economy is liberal and the political situation is stable, very stable...Our economic and political stability provides you an opportunity to invest more," President Sata said.
"When you come to Zambia, my team will organise that we meet and also arrange various other meetings for you. We value and respect your widespread network and influence worldwide in money matters."
In response, Sir John assured President Sata that the bank was 30 per cent retail and focused on expanding operations in that area.
He said Zambia had great opportunities for the bank in the agricultural sector and SMEs sectors.
This is according to a statement issued by President Sata's press aide George Chellah.
The bank's chief executive for the Africa region, Diana Layfied, accompanied the chairman. The Zambian team comprised Minister of Agriculture and Cooperatives Emmanuel Chenda, Zambia's High Commissioner to the United Kingdom, Lt Col Bizwayo Nkunika and officials from the Zambian mission in London.
Labels: AGRICULTURE, MICHAEL SATA, STANCHART
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Bank of Zambia sets benchmark interest rate at 9%
TIME PUBLISHED - Friday, March 30, 2012, 4:40 am
Bank of Zambia yesterday rolled out a monetary policy framework to replace money-supply targeting, setting the inaugural benchmark interest rate at 9 percent, which analysts said signalled significant monetary tightening. The rate will come into effect on April 2.
International analysts said the new benchmark represented monetary tightening, most notably because the central bank’s overnight lending facility – the rate it charges commercial banks as a lender of last resort – is due to be set at 250 basis points above the policy rate.
“This is a significant tightening,” said Razia Khan, head of Africa research at Standard Chartered in London. “From levels of around 6 percent previously, overnight rates should now fluctuate within a 7-11 percent band.”
The new rate, which has been in the pipeline for more than two years, should also add more transparency to what is already an attractive frontier market for international bond investors chasing after high yields.
Unlike its counterparts in East Africa, Zambia has managed to keep a lid on inflation in the last 12 months, due in part to the relative stability of its currency, the kwacha, against the dollar.
However, since populist opposition leader Michael Sata was elected president in September, the kwacha has weakened from around 5,000 to 5,300 amid concerns about more state pressure on foreign investors, particularly in the mining sector.
Bank of Zambia (BoZ) deputy governor Bwalya Ng’andu said the effect of kwacha weakness posed a risk to non-food inflation, although stable food prices in the rapidly expanding agricultural producer should moderate the overall picture.
“The bank has weighed the inflation risks and has determined that average inflation during the policy-related period would remain below 7 percent,” he told a news conference to announce the new rate.
Under Sata’s predecessor, Rupiah Banda, the central bank had made clear it wanted to introduce a benchmark interest rate, although Sata’s firing of BoZ governor Caleb Fundanga shortly after taking office had cast doubt on those plans.
One of Sata’s policy priorities has been to cut the cost of credit for Zambia’s businesses and its 13 million people in order to stimulate growth beyond the mining sector.
With the reforms, Zambia is marching in the footsteps of other frontier African states, most recently Uganda, which launched a benchmark rate and inflation target last July to tame inflation that had soared to a 17-year high of 16 percent.
The new policy took time to bed down, and inflation shot up to more than 30 percent in the final quarter of 2011 before a flood of foreign cash into high-yielding domestic debt reversed a slump in the shilling, cutting the cost of imports
[Reuters]
Labels: BOZ, INTEREST RATES, LENDING RATES, STANCHART
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Zambia takes back Libya-owned Zamtel, knocks off three zeros from the kwacha
TIME PUBLISHED - Monday, January 23, 2012, 4:10 pm
Zambia will take back a 75 percent stake in local fixed-line operator Zamtel that is currently held by Lybia’s LAP Green Networks, Finance Minister Alexander Chikwanda said on Monday.
“We made a decision to restore Zamtel back to the people of Zambia,” Chikwanda said at a media briefing.
“The plight of the workers may be affected temporarily but we are trying to put up something permanent. If we find Zamtel is not adequately capitalised we will avail fresh capital.”
Zambia last week seized bank accounts belonging to Zamtel as part of a money-laundering investigation. The company has denied any wrongdoing.
Under its previous government, Zambia sold a majority stake in Zamtel to the Libyan operator for $257 million. A government inquiry in November ruled that 2010 transaction illegal.
Chikwanda also said Zambia would rebase the kwacha currency by lopping off three zeros, a move that should make it easier for foreign investors to participate in the economy,
“The rebasing had to be done when all the fundamentals like inflation and GDP growth were right and we think they are now right,” Chikwanda said.
Currency rebasing usually does not change the exchange value of the currency and is introduced to make commercial calculations easier.
The rebasing might be kwacha positive “to the extent that it is a continued commitment to low, and stable inflation”, said Razia Khan, head of Africa research at Standard Chartered.
The kwacha was last trading at 5,120 against the dollar from 5,123 at the end of last week.
Government would also raise commercial banks’ capital requirements to 104 billion kwacha, and 250 billion kwacha for foreign commercial banks from 12 billion kwacha to make them more resilient to economic shocks.
“The measure to raise the minimum capital is intended to mobilise additional resources to enable banks participate more effectively in growing the economy by increasing credit available to the private sector,” Chikwanda said.
[Reuters]
Labels: KWACHA, STANCHART, ZAMTEL
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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
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Standard Chartered names new CEO
29/11/2011 00:00:00
by Business Reporter
STANDARD Chartered Bank has named a new CEO for its Zimbabwe operations. Ralph Watungwa is promoted from heading Standard Chartered’s fast growing consumer banking franchise in Zambia.
Diana Layfield, the bank’s Regional Chief Executive Officer for Africa, also announced that Cameroonian national Ebenezer Essoka will take over as the Area General Manager for Southern Africa, alongside his existing role as CEO South Africa.
The man Essoka is replacing, the Zimbabwean Washington Matsaira, is retiring after nearly 30 years with the bank.
Layfield said in a statement on Tuesday: “These are exciting times for our clients and customers in Zimbabwe as the economic recovery gains momentum. Ralph will ensure the bank continues to play a full part in financing growth and employment across the country.”
She expressed confidence in Essoka, describing him as “one of Africa’s most experienced bankers”. Essoka, who headed the bank in Ghana before being transferred to South Africa, has held senior positions in eight of Standard Chartered’s African markets over the past 25 years.
Layfield added: “On behalf of Standard Chartered, I would also like to thank Washington Matsaira for his outstanding service, spanning almost three decades.“He leaves behind thriving businesses in Zambia, Zimbabwe and Botswana and we wish him well in his future business ventures.”
Essoka will remain based in Johannesburg, South Africa and Watungwa will be based in Harare.
Labels: BANKING, RALPH WATUNGWA, STANCHART
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Standard Bank stumps up $500m for Zambian mine loan
JOHANNESBURG, SOUTH AFRICA - Sep 30 2011 13:58
South Africa's Standard Bank said Friday it has provided a $500-million loan facility to Zambia's largest mining company, Konkola Copper Mines, a unit of London-listed Vedanta Resources. The loan will be used to refinance shareholder loans from Vedanta, the bank said.
"In addition, Standard Bank is also mandated to arrange and underwrite a $700-million term loan facility to fund investment that will turn the Zambian copper miner into one of the world's leading copper producers, and provide further impetus for growth in the Zambian economy," it said in a statement.
"The funding to KCM is the single largest injection into the Zambian Copper Belt ever by a bank," said Brad Breetzke, head of mining finance at Standard Bank said.
Last year Vedanta announced a $674-million expansion at Konkola to increase output from 2-million to 7.5-million tonnes per year. -- Sapa-AFP
Labels: KCM, STANCHART, VEDANTA
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Indigenisation: Stan chart plan rejected
26/09/2011 00:00:00
by Reuters
THE government has rejected Standard Chartered's ownership plan for its Zimbabwean unit because it falls below the required 51 percent local stake, state media reported on Monday. Under a controversial "indigenisation" law, foreign firms operating in Zimbabwe are required to sell a majority of their local business to black Zimbabweans.
Empowerment Minister Saviour Kasukuwere told the state-controlled Herald newspaper that Standard Chartered had offered an "unacceptable" 10 percent of its operation to locals.
Standard Chartered's executive for the Africa region, Diana Layfield, met Kasukuwere last week and told him the bank wanted to retain majority control of its Zimbabwe unit, the newspaper said.
Kasukuwere in August gave Standard Chartered, Barclays and other foreign-owned firms, a two-week ultimatum to submit new ownership plans or risk losing their operating licences, a move that was sharply criticised by Zimbabwe's central bank.
Finance Minister Tendai Biti subsequently announced that talks between government and the banks would continue and the deadline passed without incident.
A similar September 30 deadline set by Kasukuwere for mining companies is also set to expire this week. So far, the government has yet to follow through on its threats to seize assets of firms that don't comply with the law.
Kasukuwere has softened his tone on the ownership drive in recent weeks, and has said talks are progressing well with some mining firms.
Insurer Old Mutual said last week it had reached an agreement with Zimbabwe over local ownership of its Zimbabwean unit.
Some analysts see the drive for local ownership as designed mainly to drum up votes ahead of elections next year that President Robert Mugabe's ZANU-PF party is desperate to win.
Zimbabwe's coalition government, set up two years ago by Mugabe and his rival Prime Minister Morgan Tsvangirai, is divided over the empowerment plans being driven by the president's party.
Tsvangirai has said the plan is undermining Zimbabwe's economy, which is recovering after a decade of recession in which it shrank by as much as 5o percent, according to official statistics.
Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), MORGAN TSVANGIRAI, SAVIOUR KASUKUWERE, STANCHART
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Govt threatens to seize Barclays, Stanchart
19/08/2011 00:00:00
by Nelson Banya I Reuters
THE government has given foreign firms, including mines and banks, a 14-day ultimatum to submit "acceptable" plans on how they propose to transfer majority stakes to local owners or risk losing permits, state media reported on Friday.
Firms targeted include platinum miners Zimplats, which is majority owned by Impala Platinum (Implats), and Mimosa, Implats's 50-50 joint venture with Aquarius Platinum. Others include Rio Tinto's Murowa diamond mine, British American Tobacco and local units of British banks, Standard Chartered and Barclays.
The companies risk losing their operating licenses if they do not submit the ownership plans, the state-controlled Herald newspaper reported.
Indigenization and Empowerment Minister Saviour Kasukuwere wrote to the firms on July 28, informing them they had failed to provide acceptable details of how they proposed to transfer 51 percent shareholdings to local people within the five years stipulated by the law, the newspaper said.
In March, Kasukuwere gave mining firms 45 days to file empowerment plans and imposed a September 30 deadline for the transfer of ownership.
The deadline to submit empowerment plans has since passed.
Last month, Kasukuwere told a conference the government had rejected 175 empowerment plans from mines which mostly proposed selling 25 percent shareholdings, with 26 percent being made up of credits awarded for social investments made in infrastructure, health and education facilities.
Zimbabwe's coalition government set up by President Robert Mugabe and his rival Prime Minister Morgan Tsvangirai two years ago following disputed elections is divided over the implementation of the empowerment law, enacted in 2008 and championed by the president's ZANU-PF party.
Tsvangirai has warned that the law threatens Zimbabwe's economic recovery, which started after the formation of the power-sharing government in 2009, following a decade in which GDP shrank by as much as 50 percent, according to official figures.
Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), RIO TINTO, STANCHART
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Standard Bank named Africa’s top bank again
By Ndinawe Simpelwe
Fri 15 July 2011, 12:50 CAT
STANDARD Bank has again been named Africa’s top bank in The Banker magazine’s 2011 rankings of the world’s top banks by their Tier One capital. Standard Bank rose from 106th place to 94th place in The Banker’s list of 1000 top banks in the world.
The Banker reports in its July edition that Standard Bank had increased its Tier One capital to US$12.06 billion, an increase of 26.15 per cent on the previous year and almost twice as much as the second ranked bank.
The Banker Magazine is a leading global journal of the banking sector and the aim of the annual top 1000 world banks survey is to show banks’ soundness in relation to the Basel requirement of a minimum ratio of Tier One capital to risk-weighted assets of four per cent (increasing to seven per cent by 2019), and a minimum ratio of total capital to risk-weighted assets of eight per cent.
Standard Bank Group deputy chief executive Sim Tshabalala said the continued rise in rankings table demonstrates the group’s significant strength and ability to implement its strategy across Africa.
“It is particularly pleasing to achieve a top ranking on the basis of objective criteria applied by an independent journal. The ranking points again to the substance in our strategy to keep Africa firmly at the core of Standard Bank,” stated Tshabalala in a statement.
“The strong capital position, highlighted by The Banker’s rankings, provides a stable platform for further growth. We will continue to build first-class, on-the-ground banking franchises in chosen markets in Africa, investing in people, branch networks and systems.”
Labels: BANKING, STANCHART
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StanChart in 116% net profit growth
By Joseph Mwenda and Chiwoyu Sinyangwe
Thu 18 Nov. 2010, 04:00 CAT
STANDARD Chartered Bank Zam-bia has recorded a 116 per cent net profit growth, the highest record in 104 years of its operations in the country.
During the third quarter performance media briefing in Lusaka yesterday, Standard Chartered Bank managing director Mizinga Melu said the bank performed strongly against increased competition from both international and local financial institutions.
“In our Zambia Q3 (Quarter three) accounts which we published in the last week of October, we showed that our net profit has grown 116 per cent year-on-year to K93.2 billion. Our balance sheet has grown 18 per cent year-on-year to K3,398 billion while our deposits have grown 10 per cent year-on-year to K2,664 billion,” she said.
Melu attributed the bank’s good performance partly to a customer service-centred strategy.
“It is our clear customer centric strategy that has enabled Standard Chartered Bank to deliver an excellent set of results of the first three quarters of 2010,” she said.
Melu said this was despite the fact that the general performance of international businesses had shown that Africa and Zambia, in particular, had not been immune to the global recession.
Meanwhile, Standard Chartered Bank has projected that the Kwacha would extend its gains further with pivotal support at the K4,470 level against the US dollar.
Melu said the major factors that would support the performance of the local currency include buoyant copper prices on the London Metal Exchange, favourbale domestic economic environment and capital inflows from offshore clients looking to buy government securities.
Labels: BANKING, MIZINGA MELU, STANCHART
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COMMENT - Obviosly demanding double digit lending rates and paying around 2% savings rates isn't hurting their profitability, even though it drives most people away from the banking sector.
StanChart on track for record profit growth
By LusakaTimes
Wednesday, November 17, 2010, 16:10
Standard Chartered Bank Zambia has said its on course to record its highest net profit growth in the 104 years of its existence in Zambia before the end of the year. Speaking at a media briefing this morning, Standard Chartered Bank managing director Mizinga Melu said the bank’s net profit this year had risen to 116 percent.
“Our net profit has grown 116% translating to K93.2 billion, our balance sheet has grown 18 % which is K3,398 billion while our deposits have grown 10 % culminating into K2,664 billion.
She said the bank managed to record the increased profit despite the global economic recession that had affected Zambia and the rest of the continent.
And Ms. Melu announced a stable Kwacha projection at K4,470 level,with pivotal support.
Standard Chartered Bank’s medium to long term focus is that the Kwacha will extend its gain further with pivotal support at K4,470. The major factors to support the local currency include:
-buoyant Copper prices on the London Metal Exchange
-trade surplus in consecutive months so far this year
-favourable domestic economic environment
Labels: LENDING RATES, STANCHART
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Financial assistance to SMEs key to growth of business – Thandiwe
By Fridah Zinyama
Thu 29 July 2010, 12:50 CAT
FIRST Lady Thandiwe Banda has said financial assistance to the Small and Medium Enterprises (SME) sector is key to ensuring the growth of business in Zambia.
And Standard Chartered Bank managing director Mizinga Melu said her bank is happy to be associated with the programme to support women entrepreneurs in improving their business.
Meanwhile, Bank of Zambia (BoZ) deputy governor for Administration Tukiya Mabula has said government is committed to reforming the country’s financial sector and has since approved the extension to the initial five years the Financial Sector Development Plan (FSDP).
During a ‘Women Entrepreneurs Workshop,’ in Lusaka, Thandiwe said SMEs were key players in all the major sectors of Zambia’s economy either as producers or suppliers.
“They account for 90 per cent of the total number of firms in Zambia and employ over 80 per cent of the potential labour force in the country,” she said.
Thandiwe said the growth and development of the SME sector would have a significant bearing on Zambia’s economic development and poverty alleviation.
“The opportunities in the SME sector are many and therefore need support to transform into formal entities,” said Thandiwe.
And Melu said women play an important role in the development of local communities but few deliberate programmes had been put in place to realise their potential.
Standard Chartered is supporting 11 women entrepreneurs through mentorship programmes, networking opportunities, financial support and financial and business planning.
And Mabula said the FSDP represented a strategy that was formulated to strengthen and broaden the Zambian financial sector.
“It is aimed at realising the vision of a financial sector that is sound, stable and market based and that would support efficient resource mobilisation necessary for economic diversification and sustainable growth,” she said.
Mabula added that the second phase of the FSDP would focus on three main pillars such as enhancing market infrastructure, increasing competition and access to finance in the country.
Labels: MZINGA MELU, SMEs, STANCHART, THANDIWE BANDA
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Lend more to construction, Kapwepwe urges banks
By Mutale Kapekele
Sun 11 July 2010, 20:00 CAT
DEPUTY finance minister Chileshe Kapwepwe has urged commercial banks to increase lending to the construction and agricultural sectors. And Standard Chartered Bank Zambia has introduced the highest debit card brand that Visa offers as part of its new Priority Banking brand.
Speaking during the unveiling of Stanchart’s new infinite debt card, Kapwepwe regretted that lending portfolios for agriculture and construction sectors had remained low. The construction sector has been the fastest-growing sector in the past 10 years, with an average annual growth of 20 per cent.
“Lending portfolios remain focused on narrow areas of lending. Lending to the agriculture and construction sectors, in particular, has been lacking,” Kapwepwe said.
“Focus should be directed on reducing lending rates, diversifying portfolios to include new productive sectors such as agriculture, tourism and construction, SMEs and in improving rural access to banking and financial services.”
She said the government was aware that lending risk still remained high for commercial banks even with the introduction of the Credit Reference Bureau.
“With the introduction of the Credit Reference Bureau, the government has put in place an institution aimed at reducing lending risk to banks. Yet risk premiums still remain unacceptably high, and lending portfolios remain focused on narrow areas of lending,” she said.
“I would like to invite the commercial banking industry to step up their efforts to bring further economic stability and prosperity to Zambia. The government will continue to do its part in strengthening the financial Sector Development Plan, which will focus on bringing longer-term stability to the sector through the strengthening of the legal framework for the financial system. Government will continue to emphasise the creation of strong linkages between capital-intensive sectors and the rest of the economy so as to enhance broad-based growth.”
Commenting on the new StanChart Priority Banking services, Kapwepwe said the new product was a testament to the growth and improvement of the banking sector in Zambia.
And StanChart Zambia managing director Mizinga Melu said the new card would enable holders to have access to international banking services in 200 centres worldwide.
She explained that the new product would also make it possible for clients to make free international money transfers, access emergency cash, anywhere in the world in additional to complementary travel insurance of up to US$ 1 million and other investment services.
Labels: CHILESHE KAPWEPWE, STANCHART
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Lend more to construction, Kapwepwe urges banks
By Mutale Kapekele
Sun 11 July 2010, 20:00 CAT
DEPUTY finance minister Chileshe Kapwepwe has urged commercial banks to increase lending to the construction and agricultural sectors. And Standard Chartered Bank Zambia has introduced the highest debit card brand that Visa offers as part of its new Priority Banking brand.
Speaking during the unveiling of Stanchart’s new infinite debt card, Kapwepwe regretted that lending portfolios for agriculture and construction sectors had remained low. The construction sector has been the fastest-growing sector in the past 10 years, with an average annual growth of 20 per cent.
“Lending portfolios remain focused on narrow areas of lending. Lending to the agriculture and construction sectors, in particular, has been lacking,” Kapwepwe said.
“Focus should be directed on reducing lending rates, diversifying portfolios to include new productive sectors such as agriculture, tourism and construction, SMEs and in improving rural access to banking and financial services.”
She said the government was aware that lending risk still remained high for commercial banks even with the introduction of the Credit Reference Bureau.
“With the introduction of the Credit Reference Bureau, the government has put in place an institution aimed at reducing lending risk to banks. Yet risk premiums still remain unacceptably high, and lending portfolios remain focused on narrow areas of lending,” she said.
“I would like to invite the commercial banking industry to step up their efforts to bring further economic stability and prosperity to Zambia. The government will continue to do its part in strengthening the financial Sector Development Plan, which will focus on bringing longer-term stability to the sector through the strengthening of the legal framework for the financial system. Government will continue to emphasise the creation of strong linkages between capital-intensive sectors and the rest of the economy so as to enhance broad-based growth.”
Commenting on the new StanChart Priority Banking services, Kapwepwe said the new product was a testament to the growth and improvement of the banking sector in Zambia.
And StanChart Zambia managing director Mizinga Melu said the new card would enable holders to have access to international banking services in 200 centres worldwide.
She explained that the new product would also make it possible for clients to make free international money transfers, access emergency cash, anywhere in the world in additional to complementary travel insurance of up to US$ 1 million and other investment services.
Labels: CHILESHE KAPWEPWE, STANCHART
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COMMENT - Now if STANCHART is the lead financier for foreign mining projects in Zambia, why don't they finance Zambian owned mining initiatives? If you already have foreign owned banks, why is there a need for foreign owned mining companies?
We’re lead finance arranger in mining sector – StanChart
By Kabanda Chulu
Thu 27 May 2010, 04:00 CAT
STANDARD Chartered Zambia Plc has said the bank is in a strong position and has arranged over US $1 billion in the last four years to finance key mining projects in the country.
Explaining the role the bank is playing in the revival of the mining sector, Standard Chartered Zambia head origination and client coverage Robin Bairstow stated that the bank considers the industry as important looking at the potential it had shown.
“We are the lead arranger of financing in the sector and the bank has arranged over US $1 billion in the last four years and some of the key mining projects that Standard Chartered has arranged financing include Konkola Deep Mining Project (KDMP), Lumwana and Kansanshi mining projects and we also provide banking services to the mining support industries including credit facilities to finance capital expenditure projects and working capital for their operations,” Bairstow stated.
“Standard Chartered is well-positioned to play a vital role by participating in some of the infrastructure development initiatives in the offing including provision of corporate advisory services to would-be sponsors of some of the projects in raising capital. In addition, as businesses expand, demand for banking services will increase and additional manpower would be recruited by the bank and we shall continue with our corporate social responsibility initiatives to assist the community in the areas of health, education, youth empowerment and the environment.”
He stated that Standard Chartered also provides risk management solutions such as commodity and foreign exchange hedging and cash management solutions and treasury services, which include local and cross-border payments.
“The bank provides loans for projects and capital expenditure; this is mainly to fund existing and new projects for future growth such as asset backed financing to finance acquisition of equipment to increase production capacity and trade finance for working capital finance including import and export financing,” Bairstow stated.
“We also provide electronic banking which enables clients initiate local and cross border supplier and salary payments, automating bank reconciliations, initiating letters of credit transactions and treasury services.”
He stated that the bank was considering playing significant roles in infrastructure development initiatives that had been lined up.
“We are considering playing a bigger role in the upgrading of rail system and roads including housing development and hydropower generation projects and the economic zones under construction,” stated Bairstow.
Labels: FDI, ROBIN BAIRSTOW, STANCHART
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Strong liquidity enables us to continue building market share – StanChart
By Chiwoyu Sinyangwe
Fri 05 Mar. 2010, 04:00 CAT
STANDARD Chartered Plc has announced a seventh successive year of record income of US $15.18 billion and operating profit before tax of US $5.15 billion last year despite adverse effects of the global economic crisis.
Standard Chartered Plc, which trades in the country as Standard Chartered Zambia Plc stated that the results demonstrated the underlying strength and momentum across its markets and businesses, despite the ongoing adverse global economic conditions.
“Our strong liquidity and capital position enabled us to continue building our market share across our footprint, generating positive business momentum as we enter 2010,” Standard Chartered Plc stated.
“2009 delivered strong and diversified profit and income growth across our markets in Asia, Africa and the Middle East. Five markets delivered income of over $1 billion, with India and Hong Kong also delivering over $1 billion in operating profit before tax (OPBT).”
Standard Chartered Plc stated that wholesale banking continued to demonstrate strong business momentum with significant increases in both client and own account income growth, while consumer banking saw a strong upturn in performance during the second half of the year.
“Throughout the tough environment, Standard Chartered has continued to provide support for its customers and corporate clients, significantly increasing lending and other forms of support across our markets,” stated Standard Chartered Plc. “2009 total lending climbed by 13 per cent US billion to US $250 billion. We helped many more of our customers buy their own homes, increasing our mortgage lending by nearly 21 per cent to US $58 billion. We helped small and medium enterprises start up and grow with an extra 14 per cent increase in lending to more than US $13 billion.”
Standard Chartered Plc stated that it continued to focus on the basics of good banking, keeping a tight grip on costs and risk control and maintaining a liquid and conservative balance sheet.
Labels: BANKING, STANCHART
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