Zimbabwe Economic News Roundup: Posco invests in Zimbabwe ferrochrome processor, Indian's award Zimbabwe new tourism accolade
This comes after Treasury ordered all banks to repatriate 75% of funds held in offshore accounts with effect from March 1 as part of measures to curb liquidity challenges. Appearing before the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion yesterday, Finance Minister Tendai Biti said about $266 mln was being kept out of the country.
Biti allayed concerns over the liquidity situation, saying the country’s banks had enough money in the accounts.
Treasury, he said, wanted about $127 mln to be repatriated, adding that the figure was likely to be met by next week.
“This shows us that you can get more out of dialogue with the market than through ‘jambanja’ and this money is going to be used for the productive sector,” said Biti.
He said Treasury was concerned that some bank balances were very low and urged them to pursue mergers. “There are 23 banks in the country but some balances are not good. It therefore makes sense that there be mergers that in stead of 23 banks we can have 10 or six strong banks,” he said.
We have mandated the RBZ to enter into dialogue with the banks to consider this and we are not going to force anyone.” Government will pass a law forcing banks to merge – Herald, Tuesday February 21,
Indians see Zimbabwe as a 'promising tourism destination'
Zimbabwe has been awarded the Promising New Destination Accolade at the just-ended Outbound Travel Mark in Mumbai, India. The award was handed over to the Zimbabwe Tourism Authority at the travel fair attracted over 750 exhibitors from 34 countries and 24 Indian federal states.
OTM is a platform for the travel and tourism industry to reach out to the travel trade, business and potential tourists. This is the first time Zimbabwe exhibited in India. Other African countries that participated were Egypt, Kenya, Tanzania and Seychelles – Herald, Tuesday February 21,
Posco - South Korean firm invests in Ferrochrome processor
South Korean multinational steelmaker Posco said last week it had signed an initial agreement to acquire a stake in local ferrochrome-processing company Maranatha from Gurta of Switzerland and Zimbabwe’s Anchor Holdings.
In a statement, the company said the deal was facilitated by a need to increase ferrochrome supply to the steel giant in a bid to cut the costs of manufacturing stainless steel products.
The main ingredients of stainless steel include nickel and chrome. But the company could not provide further details of how much Posco would pay for the stake – Herald, Tuesday February 21,