ZB eyes diaspora after sanctions reprieve

ZB Financial Holdings Limited is working on a diaspora business strategy after its removal from the sanctions list by the Office of Foreign Assets Control (Ofac) in the United States Department of the Treasury.

BY BUSINESS REPORTER

Mashonaland Holdings board chairperson, Ron Mutandagayi
Mashonaland Holdings board chairperson, Ron Mutandagayi

Ofac administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes.

ZB Financial Holdings chief executive officer, Ron Mutandagayi told shareholders last week that a strategy has been prepared to target Zimbabweans living outside the country.

“A diaspora business strategy has been prepared and will be rolled out in the near future targeting markets in Australia, the United Kingdom, Canada and the United States,” he said.

Mutandagayi said the group has been re-engaging its foreign correspondent banking network following its removal from the Ofac listing on October 4, last year.

The group was placed on the specially designated nationals by Ofac in 2008.

“To date, the group has been able to resuscitate its euro, British pound, South African rand and US dollar correspondent banking accounts. A number of payments have been effected using all the accounts in question,” Mutandagayi said.

The group’s total assets as at April 30 2017 amounted to $406,8 million, showing a reduction of 7% from $ 439,3 million reported as at December 31 2016. This, Mutandagayi said, was attributed to a 15% reduction in deposits as a result of a decline in wholesale funding.

Resultantly cash resources declined by 31% to $56,9 million during the period from $82,2 million as at December 31.

Profit before tax was $6,88 million, up 195% from the one realised in the same period last year. Loans and advances were down 4% to $92,9 million from the December 31 figures. Mutandagayi said loan facilities that have been approved by the group but not yet disbursed were $50 million as at April 30.

“Draw-downs are being affected by external factors which include the liquidity crunch and the shortage of foreign currency,” he said.

6 Comments

  1. Muri Kutyirei Vana Vakatiza Nhamo

    Hoo nhai chinyatsotaura naTobaiwa Mudede woda kuvhara mwena unobuda ishwa ! ? Kuti kana waguta wosunda dura

    1. Mazimba are very vindictive to the diaspora. Tobaiwa n club want to block diaspora with a silly, cruel citizenship law. Ivo variku diaspora must stop supporting this useless govt until it stops uttering rubbish. What security threat does a person who was born here in zimbabwe pose when they have dual citizenship? register them and make them pay a tx of some sort kana zvirizvo zvamunoda. Kwete kugo muka muine godo and then you want to make it policy. Chii ichocho. Zvichapera chete. Muchamhara chete sooner or later.

  2. This is the problems with dictators and their advisors. Mr Mugabe, advised by Tobaiwa Mudede, is contemplating repealing the dual citizenship provision in the Constitution, and have done virtually nothing to implement the provision by way of law. Yet, in their warped reasoning they think the Zimbabwean diaspora is a cash cow that can invest hard earned money (from wiping bums of elderly whites according Mugabe who is gifted of the garb) in vehicles they control such as ZB. We are not fool, that is why we have been able to relocate to distant lands and trade our skills successfully. We will not part with a penny if you keep masturbating in our faces. Just get a life!

  3. Mr/Mrs Editor, why does it take you for ever to moderate my comments?

  4. It appears to me the diaspora is funding the foreign trips for the top Zanu government officials at the expense of the much needed infrastructure in the country. That will come to an abrupt end if the Zanu government miscalculate the loyalty of the Diasporas, they will tighten their pockets. Compared to yester-years in accordance to statistics, less money was sent from abroad due to uncertainty and the suspicious currency issued to the recipients. Never mind the undocumented transactions, that was always there and the statistics were still good. The focus put by Zanu to tap this as easy revenue will instead have a very negative impact on those who still had the courtesy to send money home, they are not blind, they are aware of the abuse of there funds substituted by junk money. As for people not banking money, am not sure, who will bank money in an institute which is legally capable of making your savings disappear without trace? Zanu should fix that if people have to put money in the bank, I wouldn’t work to finance someone else, what happened to interest? or current account?

  5. Diaspora is eyeing your citizenship laws too bustards.

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