Stanchart group announces Zim pull out

By Stanley James, Business Editor

Standard Chartered Bank Zimbabwe Limited has formally advised the Reserve Bank of Zimbabwe (RBZ) that its parent holding company is pulling out its businesses from Zimbabwe.

Reserve Bank of Zimbabwe Governor, Dr John Mangudya revealed the decision by the Standard Chartered Bank Group to exit Zimbabwe in a statement this Thursday, saying monetary authorities have now been formally updated of the latest developments.

Under the plan, the group is also pulling out its business interests in several African and Middle East countries, including Zimbabwe.

The group informed the central bank authorities that its decision has been necessitated by a repositioning strategy of its operations and formulating a new business model.

The financial group, headquartered in the United Kingdom, has been in Zimbabwe for more than 130 years.

According to the central bank, a change of ownership and control of Standard Chartered Bank Limited is on the cards.

Monetary authorities, however, noted that despite plans to leave Zimbabwe, the bank is currently adequately capitalised, liquid and viable.

Of late traditional or locally owned banks have outpaced foreign-owned financial institutions in terms of assets and deposit base, including the ability to lend to productive sectors of the economy.