Royal Bank Opens Today - The Daily News (Harare)
Economic watcher
Zimbabwe? Are there profits to be made?
**************** end of question
Royal Bank Opens Today
The Daily News (Harare)
June 3, 2002
Posted to the web June 3, 2002
Ngoni Chanakira, Business Editor
THE Royal Bank of Zimbabwe Limited (Royal Bank) opens its doors to the public
today, bringing to 15 the total number of commercial banks operating in
cash-strapped Zimbabwe.
In an interview on Friday ahead of the bank's official launch at the end of
this month, Jeffrey Mzwimbi, the chief executive officer, denied that Zimbabwe
was "over-banked".
Mzwimbi said: "I don't believe that the country is over-banked. There is still
room for more banks."
Royal Bank was given its commercial banking licence by the Ministry of Finance
and Economic Development on 14 March this year.
It was authorised to begin operations on 8 May by the Reserve Bank of Zimbabwe
(RBZ), while the authorised dealership was given the nod on 15 May.
The bank's paid up capital is $100 million, the minimum amount stipulated for
commercial banks by the RBZ. The bank's shareholders include Royal Financial
Holdings (47,75 percent), Streamland Investments (21,25 percent), Covenant
Investments (18 percent), Intermarket Unit Trusts (4 percent), and others (9
percent).
The non-executive directors include Michael Tapera, chairman, directors,
Chakanyuka Karase, Florence Ziumbe, Nomsa Yehudah, Victor Chando, and Dr Mathew
Wazara.
The executive directors include Mzwimbi, the chief executive officer, Meclina
Tshabalala, chief accounting officer, and executive directors, Hardwork Pemhiwa
and Durajadi Simba.
Mzwimbi, who has been in the banking industry for more than 18 years, said he
could not reveal the names of the directors of the shareholders because this
would scuttle the bank's advertising campaign to be launched today.
"Our advertising consultants won't be too happy if we do so today (Friday)," he
said. "However, there is nothing unusual about them because they are all
Zimbabweans."
He said the bank had entered into partnerships with various foreign banks such
as in South Africa, where they have three partnerships, two in the United
Kingdom, two in the United States of America, and one each in Belgium and
France.
Mzwimbi has worked for banks such as Barclays Bank of Zimbabwe Limited, the
Zimbabwe Banking Corporation Limited, and the Preferential Trade Area Bank, as
well as for Econet Wireless Holdings Limited, where he was instrumental in the
launch of the nation's leading telecommunications concern.
He said his bank would offer several facilities such as the Royal Savings
Account, whose minimum balance is $1 000, but which earns interest on a daily
basis, the Royal Professional Savings Account ($30 000), Installment Deposit
Account ($2 000), as well as the Royal Classic Account for tycoons maintaining
a minimum balance of $100 000.
In addition to the 15 commercial banks operating in Zimbabwe, the country also
has nine merchant banks, eight discount houses, seven finance houses and at
least five building societies which compete with each other for deposits.