Bank, fer­tiliser firms off sanc­tions list

Chronicle (Zimbabwe) - - Business Chronicle -

ZB Fi­nan­cial Hold­ings and ma­jor fer­tiliser firms Chemplex and ZFC have been taken off the United States sanc­tions list, the US Trea­sury an­nounced on Tues­day.

The In­dus­trial Devel­op­ment Cor­po­ra­tion (IDC), a govern­ment na­tional devel­op­ment fi­nance in­sti­tu­tion with in­vest­ments across the econ­omy in­clud­ing the two fer­tiliser firms, was also struck off the sanc­tions list.

The United States govern­ment im­posed fi­nan­cial sanc­tions on Pres­i­dent Robert Mu­gabe, his fam­ily and se­nior of­fi­cials as well as govern­ment-re­lated busi­nesses in March 2003, over al­leged charges of un­der­min­ing demo­cratic in­sti­tu­tions and pro­cesses in Zim­babwe.

In terms of the sanc­tions, the US Trea­sury depart­ment, through its Of­fice of For­eign As­sets Con­trol (OFAC), pro­hibits trans­ac­tions — by US per­sons or in­sti­tu­tions — in­volv­ing in­di­vid­u­als and en­ti­ties on the sanc­tions list.

With a 24 per­cent stake, the Zim­babwe govern­ment is the sec­ond largest share­holder in ZB Fi­nan­cial Hold­ings, which has re­tail bank­ing, mort­gage lend­ing and in­sur­ance sub­sidiaries. Public pen­sion scheme, the Na­tional So­cial Se­cu­rity Au­thor­ity (NSSA) is ZB’s big­gest share­holder, with 38 per­cent.

The govern­ment, through its In­dus­trial Devel­op­ment Cor­po­ra­tion, wholly owns Chemplex and has a ma­jor­ity stake in the Zim­babwe Fer­tiliser Com­pany. Com­bined, Chemplex and ZFC are the largest man­u­fac­tur­ers and dis­trib­u­tors of agro­chem­i­cals in Zim­babwe. — The Source

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