In mid-June, Cambria Africa announced that its Zimbabwe-based subsidiary—the payment-services provider Payserv—had suspended its service to its bank customers in Zimbabwe. According to Cambria, the suspension was due to a “collective refusal to pay historical and contracted pricing to Payserv Africa in US dollars
In any economy, banks play the critical role of re-allocating capital, from surplus areas into deficit areas. It is a role that sees them take deposits from the public and use the same to issue loans to businesses, both large and small. But that process hasn’t been happening much in Sub-Saharan Africa. Instead, banks, motivated by risk-aversion, have been funneling liquidity into the coffers of governments through government-issued debt securities. SSA banks must get back to the business of lending to the private sector if they are to escalate shareholder returns.
It is true that one person can make a difference, for good or ill, for an entire nation; such was the case in Zimbabwe, once touted as the “breadbasket of Africa”, but after 30 plus years under the iron grip of President Robert Mugabe more aptly known as its economic basket case. There is renewed hope with President Emmerson Mnangagwa installed—but how much can one man do?
On November 21, Zimbabwe’s President Robert Mugabe resigned, ending his 37-year rule of the southern African nation. The resignation followed an intervention by the country’s military after Mugabe sacked his vice president, Emmerson Mnangagwa