Govt approves POSB part privatisation

HARARE - Government has approved part privatisation of the People’s Own Savings Bank (POSB) to enable the bank to raise capital, enhance service delivery and improve operational efficiency.

The move is expected to enable the financial institution to fund the country’s struggling productive sectors.

In a general notice published in yesterday’s a government gazette, government said the move would widen financial inclusion and allow the bank to better service informal businesses and marginalised communities.

The gazette reads: “To enhance POSB’s capacity to underwrite more business to productive sectors, widen the frontiers of financial inclusion through targeting informal businesses and the marginalised in the remote areas as well as access expertise and technology to improve banking operations, the government has approved the partial privatisation of the POSB.

“Pursuant to the above, POSB intends to engage the services of reputable consultants to provide advisory services on the proposed transaction to raise capital for the bank through private placement and or public offering.”

The consultant will be expected to carry out the financial, legal and operational due diligence of the bank.

Further, the consultant will be expected to undertake valuation of the bank as well as assist in the bidding process for the engagement of investors.

“The bank is inviting eligible consultancy firms to express their interest to provide the above service,” the notice further reads.

“Interested consulting firms should provide information demonstrating requisite qualifications and capacity to perform the services.”

POSB was established in December 1904 and currently operates under the POSB of Zimbabwe Act (chapter 24:22) promulgated on April 1, 2001.

The bank has before this move, been wholly owned by the government of Zimbabwe.

The move to privatise part of the bank’s operations come amid growing calls for government to restructure its stake in public entities.

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