Threats of foreign bank seizures heighten

National Indigenisation and Economic Empowerment Board chairperson, David Chapfika, has backed controversial Indigenisation Minister Saviour Kasukuwere's stance on the takeover of foreign banks saying there was nothing sacred about the financial sector.

Speaking during the Buy Zimbabwe conference in Harare on Wednesday, Chapfika said, "even the sector committees accepted that the sector needs to be indigenised."

Chapfika said the move would limit the capital outflow of currency to other countries.

"If you want to kill cattle, kill them all. You can't say this one is too fat today and leave it."
 
Kasukuwere has clashed over his stance with Reserve Bank of Zimbabwe governor Gideon Gono who last week said he was opposed to localising foreign banks.

"We are ready to issue licences along the lines of villages, friendships and totems should people so wish to go into banking. It is improper, it is not right for us to want to destabilise the financial sector by pursuing short-term gratifications which can only lead us to unintended consequences," said Gono.

"A bank is different from a manufacturing company, and mining. It is a custodian of people's confidence," said Gono.