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Thursday, July 18, 2024

Government lines up POSB partial privatisation roadmap

Story by Stanley James, Business Editor

STATE-owned Peoples Own Savings Bank (POSB) is set for partial privatisation as the search for strategic investors to acquire minority equity gathers momentum.

Under the plan, the banking institution will retain a majority stake with private investors purchasing minority shares through capital injection.

Giving an update of the partial privatisation roadmap at an Annual General Meeting in Harare this Wednesday, the state-owned financial utility’s board chairperson, Mr Israel Ndlovu highlighted the importance of the initiative in line with parastatal reforms.

He said, “We are back on track, and at the moment we have reached a stage where we shall be asking for expression of interest from investors in Zimbabwe and elsewhere in the world and we are at a stage where the project is at least expected to finish by December this year although the contract has been extended to March 2024.”

The financial entity has also declared a dividend of over ZWL$110 million to its parent shareholder, the government.

“POSB is a state-owned bank, therefore, from the support we have been getting from our shareholders, we resolved that we declare a dividend of ZWL$120 million,” said POSB chief executive officer, Mr Garanaishe Changunda.

The government has lined up some of its utilities for partial privatisation through the disposal of minority shares as part of increasing efficiency, reducing dependency syndrome on fiscal rescue packages, and facilitating growth.

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