Zimbabwe bank eyes Botswana

KFHL public relations manager Mrs Farai Mpofu said the bank embarked on the project earlier this year and was still awaiting regulatory approval from Botswana to establish a financial entity in that country, considered to be one of the best for a joint venture of this type “KFHL has continued to grow its regional operations and is now mainly focused on increasing market share in those markets, pursuant to which Kingdom has entered into a joint ven-ture (agreement) with a Botswana-based Venture Fund with an initial cap-ital of BWP27million.” In addition, Mrs Mpofu said an application has been filed with the reg-ulatory authorities in Botswana to establish a financial entity. Capital that had been earmarked for re-investment in Zambia was channelled to Botswana to bolster opera-tions following the relevant regulatory approvals. KFHL initially planned to open a merchant bank in Zambia last year but it has since opted to re-invest the funds in the Botswana venture due to burea-cratic delays it experienced in Zambia. In 2005, Kingdom surrendered its 68 percent equity in Botswana subsidiary Kingdom Africa Bank Limited to a consortium of Batswana investors. This week the bank’s three major share-holders – Meikles Africa, Econet Wireless Zimbabwe and Valleyfields Investments which holds 77 percent stake in KFHL – threw their weight behind the group’s proposed rights offer. The $1,5 trillion rights offer will be used to recapitalise Kingdom’s commercial banking and asset manage-ment arms which between them need $1,1 trillion to meet the new capitalisa-tion requirements before the September 30 deadline. ‘ The Herald

June 2006
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