AfrAsia Bank stops banking operation in Zimbabwe to refocus on profitable business lines.
According to the Chief Executive Officer of ABL, James Benoit ,the difficulties that ABZL was facing arose primarily from legacy issues within the bank and the difficult economic environment within the country. (Image: ventures-africa)
AfrAsia Bank Limited’s (ABL) subsidiary, AfrAsia Bank Zimbabwe Limited has recently ceased its banking operations in Zimbabwe.
The decision has been made aware to the Central Bank authorities of Zimbabwe and the Bank of Mauritius as well.
It is to be highlighted that the termination of ABZL’s banking activities in Zimbabwe will not affect in any manner whatsoever the operations, clients and commitments of ABL in Mauritius and other parts of the world.
ABL remains a financially solid institution, well capitalised with strong local and international
Zimbabwe has been going through an economic slowdown due to liquidity challenges and a fragile global financial environment and to operate in such environment will not be beneficial to the Bank.
In a statement released to the Chief Executive Officer of ABL, James Benoit, said that “the difficulties that ABZL was facing arose primarily from legacy issues within the bank and the difficult economic environment within the country.”
“We have, over the past months, been working diligently to shore up liquidity and capital, in order to provide tangible and sustainable solutions to the current situation faced in Zimbabwe, where discussions with one international investor had reached an advanced stage but we were unable to get through to a conclusive agreement on satisfactory terms and conditions,” he said.
It can be recalled that ABZL started to faced obstacles and went under a restructuring process where ABL paid prominent Zimbabwe banker Nigel Chanakira $12 million (approx Rs 3.9 billion) following the disposal of his 30 percent stake in ABZL as Chanakira divested his stake in AKZL just last month, disposing 289,133,648 shares he indirectly held through his family investment vehicle Crustmoon.
About AfrAsia Bank Limited:
Mauritius-based financial major AfrAsia Bank Limited is a boutique private and corporate bank, established in 2007.
The bank has the ability to tailor innovative banking solutions for both local and international markets focusing on –corporate and investment banking, private banking and wealth management, as well as international banking solutions.
In addition to Mauritius-based conglomerate GML, other strong strategic partners include PROPARCO (subsidiary of French Development Agency AFD), Intrasia Capital and Asiabridge.
The bank’s core banking and transactional capabilities are conducted through bank representative offices in Cape Town and Johannesburg, its asset management arm, AfrAsia Capital Management and its investment banking arm, AfrAsia Corporate Finance.