AfrAsia Bank logo used from 2013 Image Credit:AfrAsia Bank
|AfrAsia Zimbabwe Holdings Limited|
|Fate||Surrended banking licence to Reserve Bank of Zimbabwe|
|Defunct||February 24, 2015|
|Headquarters||3rd Floor, Karigamombe Centre, Cnr Kwame Nkurume Avenue & Angwa Street, Harare, Zimbabwe|
|Nigel Chanakira (Former founder)|
|Parent||AfrAsia Holdings Limited Mauritius|
|Footnotes / references|
Tel : +263 4 749400-9
Fax : +263 4 755 201
AfrAsia Bank Zimbabwe was a registered commercial bank in Zimbabwe which surrendered its operating licence after having gone through a rough patch in which the financial institution was forced to lay off some workers and close down several branches.
Background and Growth
Kingdom Securities Limited (“KSL”) was registered as a Discount House under the Zimbabwe Banking Act (Chapter 24:01) in 1995. Kingdom Asset Management (Private) Limited (“KAM”), and Kingdom Stockbrokers (Private) Limited (“KSB”), all duly registered as a discount house, asset manager, and member of the Zimbabwe Stock Exchange (“ZSE”) respectively. Two years later, Kingdom Bank Limited was established as an accepting house under the Banking Act. It was not until 2000 that the financial institution converted its merchant banking license to that of a commercial bank. The bank also extended its operations to neighbouring countries through the acquisition of a 25.1% stake in FDH Financial Holdings (Malawi) (“FDH”). The stake was subsequently increased to the current 38.15%. In 2007 Kingdom entered into a merger with Meikles Limited, Tanganda Tea Company Limited and Cotton Printers (Private) Limited to create Kingdom Meikles Africa Limited. The move however backfired after it became evident that the anticipated benefits of the merger were unlikely to materialise, the shareholders approved the demerger of KFHL through a structure involving a dividend in specie. The demerger was finally completed in 2011 following a series of altercations between the two parties and also dragging in the like of Phillip Chiyangwa.
The Coming in of AfrAsia
Through a private placement, AfrAsia Bank Limited of Mauritius came to own 35 percent of AKZL IN 2012. Chanakira was eventually bought out of the institution by AfrAsia in 2013 which saw the institution being renamed to AfrAsia Zimbabwe Holdings.
79 million Lawsuit
In April 2014, the bank was sued by Spiritage Zimbabwe Limited for allegedly fraudulently converting to its own use client's funds received from the African Export-Import Bank. The financial institution was also dragged to the courts by Zach Wazara for allegedly falsifying records to the Reserve Bank of Zimbabwe to conceal non-performing loans. Wazara was quoted as having said that Afrasia Bank Zimbabwe diverted Afreximbank loan funds earmarked for Valley Technologies to benefit its management and directors.
Operational Constraints and Cancellation of License
After having faced a number of operational challenges, the bank was forced to hand over its license to the Reserve Bank of Zimbabwe. The bank was also at one point reported to have retrenched its employees and closed down several branches in a bid to cut back on operational costs. There were conflicting media reports about the license of the bank with some reporting that the license was withdrawn by the central bank while in other circles it was reported that the bank had voluntarily surrendered its license. RBZ is said to have cancelled the licence citing that the banking institution was no longer in a safe and sound condition in that the institution was grossly undercapitalised and facing chronic liquidity challenges.
- Chris Muronzi, AfrAsia to retrench, cut branches, Zimbabwe Independent, Published: 18 Jul 2014, Retrieved: 25 Feb 2015
- AfrAsia Bank Zimbabwe timeline: from iconic bank to financial washout, New Zimbabwe, Published: February 24, 2015, Retrieved: February 25, 2015
- L.S.M Kabweza Afrasia Bank, formerly Kingdom, shuts down. Joins several failed local banks, TechZim, Published: February 24, 2015, Retrieved: February 25, 2015
- Conrad Mwanawshe Afrasia bank faces 79m lawsuit, The Herald, Published: April 25, 2014, Retrieved: February 25, 2015
- Chris Muronzi AfrAsia to retrench, cut branches, The Independent, Published: July 18, 2014, Retrieved: February 25, 2015
- RBZ cancels AfrAsia banking licence, NewsDay, Published: February 25, 2015, Retrieved: February 25, 2015
- http://source.co.zw/2015/02/afrasia-bank-zimbabwe-timeline-from-iconic-bank-to-financial-washout/, The Source, Published: 24 Feb 2015, Retrieved: 25 Feb 2015