THE Deposit Protection Corporation (DPC) is still in discussions with investors who want to take over microfinance institution, MicroKing.
BY VICTORIA MTOMBA
MicroKing is a subsidiary of AfrAsia Zimbabwe Holdings Limited (AZHL).
AZHL flagship unit AfrAsia Bank surrendered its operating licence in January.
Responding to questions from NewsDay, DPC chief executive officer John Chikura said the depositors’ body was not “yet in a position to make statements on the proposed investments in MicroKing” due to confidential and professional reasons.
In his mid-term monetary policy statement, Reserve Bank of Zimbabwe governor John Mangudya said a consortium of European investors, Microcred and AfricInvest, would invest $25 million in the microfinance unit.
“The investors will have a 100% stake in MicroKing and they can regularise as they go. We are concerned about the depositors’ funds and the resuscitation of the bank,” he said.
MicroKing was closed due to the problems of its parent company.
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Early this year, Finance minister Patrick Chinamasa said the government was willing to save and have the unit working again.
The Department for International Development of the United Kingdom had $800 000 investments in MicroKing and investors both foreign and local were keen to invest in the unit.
The small and medium sectors of Zimbabwe received $200 million through loans from MicroKing.
MicroKing services are seen as helping the drive towards financial inclusion as the informal sector employs over 75% of the country’s working population.
Meanwhile, DPC will hold the second creditors meeting for AZHL in Bulawayo and Harare for creditors to submit their claims.
The corporation is in the process of paying out money to depositors, which is $500 and below.
