FRIDAY, NOON:
THE Absa Group announced on Thursday that it is about to pay R50-million for a 25% stake in Commercial Bank of Zimbabwe, a mid-sized, state-controlled bank.
”[Zimbabwe] is the biggest export market for South Africa in the region and because of our commercial profile it’s important that we look at opportunities like this,” said Eric Hirsch, head of Absa’s financial institutions division.
Negotiations over Absa becoming a technical partner in CBZ are underway, while it is believed the Zimbabwean bank has also attracted the attention of First National Bank and an American Bank.
The Zimbabwean government now holds just over 50% of CBZ, management holds 5% and the balance is owned by Zimbabwean insitutions. Absa’s 25% was reserved for a foreign partner last year.
The country’s banking sector has the jitters at the moment, following the collapse of Roger Boka’s United Merchant Bank after just three years in business. Unlike that institution, CBZ is believed to have a clean loan book, following decisive action by chief executive Godfrey Gono. CBZ was also recapitalised before last year’s listing.