ZIMCODD demands reversal of POSB privatisation

By Sukuoluhle Ndlovu

Zimbabwe Coalition on Debt and Development (ZIMCODD) has urged government to call off the privatisation of the Peoples Own Savings Bank (POSB)

Plans to privatise POSB were announced in 2018 aimed raising funds under the Transitional Stabilisation Program (TSP).


In a statement, ZIMCODD said partially privatising POSB was against the nation’s interest.

“We call upon the Parliament of Zimbabwe to safeguard the autonomy of the POSB and to provide critical oversight to ensure that the bank remains faithful to its public mandate. Instead of privatizing POSB, government should increase the autonomy for its state backed bank and enforce strict regulatory oversight by the banking supervisor.

“POSB’s infrastructure and distribution network has the reach that no other bank has and this needs to be preserved. The poor, pensioners, youth, informal sector traders and ordinary men and women who have banked with its grassroots based bank on the basis of trust in the bank’s people centered ethos.”

The economic justice lobby group added that a peoples’ bank must remain in the hands of the state.

“Privatisation entails the transfer of parastatal ownership and control from the public to the private sector and threatens the public interest. This goes against the POSB Act which states that it is a people’s bank that must remain in the hands of the State. The Act’s intention is for government to defend citizens’ long term financial interests in a volatile market economy through mechanisms such as a Bank dedicated to serving the public interest. The government of Zimbabwe must present clear evidence of the proposed benefits of the sale for public scrutiny and Parliamentary debate.”

Citizens implored government to invest in the bank’s expansion and modernization for improved efficiency and competitiveness.

One resident from Zaka who identified herself as Gogo Anethi said, “Hurumende ngaive iyo inoona nemamiriro ekubhangi rinova ratinowanira mari dzedu sesu vamwe vane mari dzepenjeni kudai. Mitemo ikachinjwa hatizozivi kuti mari dzedu dzinozita sei pamberi apo togona akumuka kuchinzi mari mubank hamusisina.”