THE Reserve Bank of Zimbabwe (RBZ) – which was recently said to be on the brink of collapse – has put up for sale several of its companies as part of an ongoing streamlining exercise that is also aimed at reducing crippling debts said to total more than US$1 billion.
In a statement published on Tuesday, the central bank said it was inviting bids for up to seven companies including Homelink which was established as part of efforts to tap into the country’s extensive Diapsora and encourage them to invest back home.
The RBZ said it intends to divest from Zimbabwe Stock Exchange-listed Tractive Power Holdings in which the bank has 58.7 percent interest as well as Tuli Coal (70 percent), Transload (50 percent), Sirtech (Pvt) Ltd (65 percent), and Carslone Enterprise (100 percent).
The bank said foreigners could also bid for the companies subject to the country’s indigenisation legislation which requires that all companies must be majority controlled by locals.
“In the case of individuals and bodies corporate wishing to acquire any of the assets under disposal, proof must be submitted relating but not limited to nationality and residency of the bidder as well as demonstration of ability to pay for the assets being acquired,” the RBZ said in a statement.
RBZ chief, Gideon Gono recently warned that the bank may be forced to shut down unless government helped recapitalise its operations.
“Very soon we will be left with no choice but to close the central bank and the consequences of such eventuality is everybody's guess given the propensity for errant Banks to do whatever they want in the absence of a strong central bank,” Gono said in a recent interview.
The bank has been forced to retrench up to 1500 workers and Gono said the majority of the remaining 530 were also keen to leave.
The RBZ is battling to retire a US$1.2 billion dollar debt pile which has seen some of its assets being put under the hammer as restive creditors increased pressure on the stricken institution.
Much of the debt is related to the bank’s free spending under so-called quasi fiscal operations in the last decade which critics say helped stoke-up world record inflation.
The bank’s troubles started when the government ditched the worthless Zimbabwe dollar in 2009 and Finance Minister Tendai Biti ordered the institution to stop the quasi-fiscal activities and revert to its core activities.