Zimbabwe gives banks a year to hand over stakes

Harare, 04 Jul – (ANA) - Zimbabwe has given foreign-owned banks one year to hand over 51 percent stakes to locals, according to a government notice, as President Robert Mugabe ramps up a drive to force all foreign-owned businesses to surrender majority control to blacks.

A government notice said all foreign-owned banks with a minimum net value of $1 had one year to reduce their shareholding to 49 percent. The southern African state has already forced mining companies such as Rio Tinto and Impala Platinum, the world's second-largest platinum miner, to turn over majority stakes in their local units to black Zimbabweans.

Emboldened by his success against miners, empowerment minister Saviour Kasukuwere is now targeting banks. Kasukuwere, a 41-year-old member of Mugabe's ZANU-PF party, has clashed with central bank Governor Gideon Gono and Finance Minister Tendai Biti over the banking sector. Biti, a senior member from Prime Minister Morgan Tsvangirai's Movement for Democratic Change party and Gono, a Mugabe ally, have opposed Kasukuwere, arguing Zimbabwe only has four foreign banks out of 26 financial institutions. (ANA)

FA/ANA/04 July 2012----------