Executing a robust growth strategy in Africa: AfrAsia Bank continues to drive its
operations in Zimbabwe
AfrAsia Bank is pleased to announce the terms of a change in the shareholding of AfrAsia
Kingdom Zimbabwe Limited (“AKZL”), as well as a restructuring and recapitalisation exercise
of the Group’s banking subsidiary, Kingdom Bank Limited (“KBL”). This strategic move is
confirmation of AfrAsia Bank’s commitment to Zimbabwe and belief in its recovery potential
as well as the key role that it can play in regional development.
Further to the restructuring, AfrAsia Bank has also announced:
The provision of additional liquidity support to AKZL and KBL, a US$20 million rights
issue to be to be led by AfrAsia, details of which will be released in due course
The rebranding of AfrAsia Kingdom Zimbabwe Limited as “AfrAsia Zimbabwe
Holdings Ltd”; Kingdom Bank Ltd as “AfrAsia Bank (Zimbabwe) Ltd”; and Kingdom
Asset Management (Pvt) Ltd as “AfrAsia Capital Management (Pvt) Ltd”
James Benoit, Chief Executive Officer of AfrAsia Bank, stated that “Kingdom Bank under
AKZL already represents one of the best banking franchises in the country and we are
committed to further developing it into the top bank in Zimbabwe, which we are confident
that we can do given that we now expect a more stable business environment going
forward. I would also like to place on record our thanks to Reserve Bank Governor Gideon
Gono and his team for their support.”
Mr. Benoit added with AfrAsia’s growing presence in the region and the increased volume of
trade and investments going into Zimbabwe, this exercise further demonstrates AfrAsia’s
commitment to tap into the African market and be instrumental in their plans to further
identify and enhance the untapped synergies in the region.
Arnaud Lagesse, Chairman of AfrAsia Bank explains “We strongly believe Zimbabwe as a
resource-rich country where there is strong entrepreneurial culture. This restructuring and
recapitalization exercise will definitely enhance our banking adeptness in other parts of the
region, enabling the AfrAsia Group to take advantage of existing and new growth
opportunities in its key market segments. This will also help us to expand further our
franchise in the SADC region through an established local operation and with highly credible
local partners.”
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On the impact that such investment would have on present customer dealings, Mr. Benoit
also declared that “It is business as usual as the AfrAsia Bank Group grows from strength to
strength. Everything is being made in the best interest of all our stakeholders with careful
risk assessment as we seek to seize opportunities in the region with the backing of our
shareholders and partners while meeting regulatory requirements. AfrAsia will now take up
the banking, microfinance and asset management businesses to new heights both in
Zimbabwe and the region for the benefit of customers and the industry.”
“The timing is now appropriate for us to unify the brand under which our Zimbabwean
operations are managed, and we are confident that the AfrAsia brand will soon come to
represent an innovative, disruptive and highly professional banking franchise in Zimbabwe
as it already does in Mauritius and South Africa” said Deputy Chief Executive Officer of
AfrAsia Bank Kamben Padayachy.
Nigel Chanakira, founding shareholder of AKZL, having disposed of his 30% indirect interest
in AKZL, said he had been persuaded by new and emerging opportunities that have been
created in the financial services sector to pursue interests outside AZKL. “I will remain
invested in the sector through Botswana based Kingdom Bank Africa Limited and will be
exploring opportunities in Zimbabwe and the region,” said Mr Chanakira.
AfrAsia Corporate Finance is acting as exclusive adviser to AfrAsia with regards to the
restructuring exercise and as co-adviser with Cosmos Capital to AKZL with regards to the
Rights Issue.
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About AfrAsia Bank
Headquartered in the Mauritius International Financial Centre, AfrAsia Bank Limited is a
boutique private and corporate bank, with the ability to tailor innovative banking solutions
for both the local and international markets focusing on:
Corporate and Investment Banking
Private Banking and Wealth Management
International Banking Solutions
In addition to Mauritian shareholder, GML, other strong strategic partners include
PROPARCO (subsidiary of the Agence Française de Développement), Intrasia Capital and
Asiabridge. The Bank’s core banking and transactional capabilities are bank representative
offices in Cape Town and Johannesburg, its asset management arm, AXYS Capital
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Management and its investment banking arm, AfrAsia Corporate Finance as well as its
banking holding company, AfrAsia Kingdom Zimbabwe Limited, now known as AfrAsia Bank
(Zimbabwe) Limited following the recapitalization exercise.
For more information, please contact:
Suneeta Motala
Head of Marketing and Public Relations
AfrAsia Bank Limited
Tel: 208 5500 / 256 7545
Email: [email protected]
Website: www.afrasiabank.com
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