6 zimbabwespecial WEDNESDAY, SEPTEMBER 12, 2012 CHINA DAILY Far-reaching reforms strengthen minister has turned ’s fortunes around. Now it’s the banks’ turn

While the 2008 peace agree- The greatest thing ment has been instrumental in we have done for raising Zimbabwe’s internation- al standing and creating a new the Zimbabwean beginning, forward-thinking economy is to Minister of Finance Tendai Biti maintain policy has been busy implementing the consistency. short-mid term economic recov- ery plan. Capitalism needs First came the multicurrency trust, so I restored move, which has successfully our credibility.” paved the way for injections of foreign cash to help develop the ‘‘ TENDAI BITI, country. Secondly, he adopted MINISTER OF FINANCE cash budgeting, to avoid a budget deficit. “I created this phrase, ‘eat what “This is not enough however; “We also need to create syner- you kill’, he says. “Failed econo- our country is developing and we gies with other regulators in the mies have the common element need to work hard. marketplace, in the and of overspending, and you cannot “Jobs are the fundamental con- securities sectors, for example. live beyond your means. There is nections between growth and Connected with that, I am also a problem of stagnant accumula- development. We are trying to do trying to re-establish the coop- tion, so our policy in Zimbabwe is the best for our people.” eration between banking govern- to eat only what we kill.” By African standards, Zimba- ments. The third measure, he explained, bwe’s banking system is “fairly “We are trying to make the Vic- was restoring a regime of positive decent”, according to Minister toria Falls area an offshore zone. It interest rates. Biti. Far from the popular media is important to attract capital and “For the past 50 years, Zim- image of Zimbabwe as having investors want guarantees on their babwe has fostered low rates of a shattered economy, ’s capital funds. There are important Harare, the capital: a hive of industry and business PROVIDED TO CHINA DAILY interest in order to keep the cost financial district is bursting with financial reforms that will be put of money low. We had no savings activity as key players implement in place in the coming months.” and it was a disaster. So I restored modern products and services. The internationally lauded min- banking and general insurance in the regime, liberalizing the inter- “We are urging the banks to cre- ister said he would be happy to see 33 countries. “When we moved to a multicurrency-based est rates and pegging it to supply ate products that will help con- more mutually beneficial partner- Luke Ngwerume, former CEO of economy, inflation went down from 231 and demand. I also liberalized the sumers, such as debit cards and ships take place with China. Zimbabwe, discussed capital markets and the current Internet banking,” Minister Biti “Chinese capital is transform- the government’s new reforms million percent to 4.5 percent.” account, so now it is possible to says. “We also need better tech- ing African economies in terms within an historical context. JOHN MANGUDYA, CEO, CBZ HOLDINGS LIMITED take as much money as you want nology. The logical thing is for the of infrastructure and as minister “It is reasonable to acknowledge from Zimbabwe. banks to reposition themselves of finance, I would like to see the where Zimbabwe was in the past, “It was a necessary element to save a fast-growing economy same happen in Zimbabwe.” before the period of economic because our economy was stag- so that they and their sharehold- mayhem,” he said. “It was a very show the entire world who we are, started operations in June 2005, nant due to excessive controls, ers can respond to economic Mutually beneficial sophisticated country, with a and what we are becoming. an intensive period of growth but I created a surplus for the first demands and invest in technol- With more than 15 million cus- sophisticated economy that was “I would love to see Chinese began. Five years later, it recorded time in years. I also reopened the ogy.” tomers and approximately 55,000 performing quite well. The infra- ‘organizations‘ dealing with Zim- an asset base in excess of $540 Stock Exchange in February 2011 employees, Old Mutual is one of structure was robust, and because babwean organizations, because million, and shareholders’ equity after three years. Creating synergies Southern Africa’s most impressive of that, we were able to see a quick at the moment, there are no real in excess of $43.3 million. “The greatest thing we have “We also need legislative banks. Founded in 1845 in South turnaround and the reinstatement relationships between Chinese The is now proceeding to done for the Zimbabwean econ- reform. The global economic Africa, and listed on the UK, South of the country to where it was. The companies and local ones within open a partnership with Bank of omy is to maintain policy con- crisis mainly involves the bank- African and three other African economy was supported by a regu- this sector. I would like to see the China, in a wider effort to pro- sistency. Capitalism needs trust, ing and sec- stock exchanges, Old Mutual latory framework so the pieces of fostering of serious relationships mote trade between the two coun- so I restored our credibility. Now tors so we need new regulations has expanded in the last decade legislation were there. between businesses from both tries. people trust us and the economy to strengthen those areas. I am through organic growth and stra- “We had always been adjusting countries, because together we As John Mangudya, CEO has been stable for the first time therefore in the process of looking tegic acquisitions to provide life our regulatory environment and can achieve more mileage; we are of CBZ Holdings Limited, in 15 years. closely at amendments. assurance, asset management, keeping an eye on what is happen- closer to the ground and we know explained: “Our economy needs ing around the world. how to use resources. to be solidified by a relationship “These days, more does need “We are motivated to make prof- between Zimbabwean and Chi- to be done. We are aware that our its, but we also know that we can- nese banks. The financial sector is government is taking care of build- not make profits if society doesn’t a pillar for business, so at CBZ, we ing a healthy system in conjunc- benefit. We understand the for- are excellently placed to become tion with all sectorial associations, mula: as Old Mutual, we know an intermediary between the two so the regulation is there and will that more jobs created in the sys- countries.” be continuously reviewed to main- tem means more insurance, sav- The CEO is understandably tain economic growth. ings, mortgages and so forth. So, upbeat about Zimbabwe’s finan- “The policy consistency and the whatever we do has to create more cial sector as a whole. predictability that you put into the capacity for demand of the prod- “When we moved from the system are fundamental to attract- ucts we supply. That is how I would Zimbabwean dollar to a multicur- ing investment, because if people like to see the Sino-Zimbabwean rency based economy, inflation can understand how you are work- relationship unfold.” went down overnight, from 231 ing now, and how you will behave Old Mutual has played a key role million percent to 4.5 percent,” in the future, it will create a much in the development of the Zimba- he said. more stable environment for them bwean economy by making capital “The environment is now quite to make long-term plans and make available for companies to grow, good for businesses following investments here.” investing in state enterprises and the government’s reforms. The Ngwerume pointed out that contributing to various sectors multicurrency system is the even during Zimbabwe’s hyper- of the economy. With the bank’s best reform they made: the new inflation era, which peaked in wealth of experience and assets, reforms will improve things even 2008, when it was reported to Ngwerume believes it should be more.” be 231 million percent, both the performing on a higher level now. With the financial arena becom- economy and Old Mutual pulled “We need to be more macro,” ing increasingly competitive, CBZ through. he said. “I would like to see big has stood fast on its core business “Zimbabwe has the highest lit- companies using us as a vehicle of providing financial solutions erary rate in Africa,” he said. “If for their investments because we to customers, and was the first to people can acquire information know where the money should be offer products in a foreign cur- and process it, they can take rea- placed.” rency to its customers. sonable decisions and they will. Formed in 1991 following the “Customers associate our bank “That situation helped people government’s bailout of the Bank with an institution suited to their think and act creatively. Old Mutu- of Credit and Commerce Inter- needs,” he said. “While others al was born more than 165 years national Holdings Ltd, the Com- said the system would not be ago, and has surpassed any num- mercial Bank of Zimbabwe is one sustainable, we took the risk. We ber of tough periods, but we have of the four largest banks in the are focusing on providing prod- continued to do our job and come country. ucts that are compatible with the out of these difficult situations.” A diversification drive in 1997 reforms, and our customers are He went on to state the impor- saw the government sell its shares happy and loyal to CBZ. tance of Zimbabwe becoming in the bank in a bid to raise capital, “We offer a complete service more competitive. and in 2004, the bank positioned to our customers. Although the “We have to understand the core itself to provide a one-stop shop- group has changed, our main competences and what makes us ping experience for financial ser- focus is to maintain our leading unique. In effect, Zimbabwe has vices. position in the financial market to rebrand. In the recent past, the place.” world has been looking at us in the Intensive growth wrong way, but now we have to When CBZ Holdings Limited InFocus provided the story.