The Reserve Bank of Zimbabwe Governor John Mangudya has said that the transaction which Malawi-based First Merchant Bank purchased shares in Barclays Bank Zimbabwe is legal. Mangudya said that the transaction complies with the country’s indigenisation policy contrary to what some quarters have claimed. Some workers of Barclays Zimbabwe were contesting the sale and had appealed to the High Court to block the sale.
According to Mangudya however, Barclays only sold 43 percent to First Merchant Bank which is well within the indigenisation threshold of 49 percent. Mangudya said 15 percent will be offered to employees and management while 10 percent would be retained by Barclays Plc for the next three years to ensure business continuity.
Appearing before, a portfolio committee of parliament Mangudya said:
When you look at it the shares that are actually being sold are 43 percent. This is below 49 percent reserved for foreigners
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