HomeBusinessRBZ renews bid to dispose of Homelink

RBZ renews bid to dispose of Homelink

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THE Reserve Bank of Zimbabwe (RBZ) has retendered the disposal of its 100% shareholding in Homelink (Pvt) Limited and two subsidiaries Easylink (Pvt) Limited and Masterlink (Pvt) Limited as part of moves to shed the central bank’s quasi-fiscal activities.

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In 2011, the RBZ announced plans to dispose of its quasi-fiscal operations and shareholding in seven companies to raise money to settle debts.

Some companies have been disposed of, but Homelink has found no takers.

“In compliance with the RBZ Act (Chapter 22,15) which requires the bank disposes of its non-core assets, the RBZ hereby notifies that it intends to retender the disposal of its 100% shareholding in Homekink (Pvt) Limited and subsidiaries Easylink (Pvt) Limited and Masterlink (Pvt) Limited,” the central bank said in a statement.

The bidding process is open to all Zimbabweans and locally-registered companies and foreigners and externally-registered firms.

“Bidders wishing to acquire the asset under disposal must submit proof relating, but not limited to, nationality and residence of the bidder as well as demonstration of ability to pay for the assets individually or as a group,” the RBZ said.

The deadline for the submission of bids has been set for February 26.

The RBZ has hired KM Financial Solutions to oversee the sale of the business entity.

Homelink was the pet project of former RBZ governor Gideon Gono which he formed at the height of Zimbabwe’s foreign currency shortages.

The bank was accused of quickening hyperinflation by engaging in quasi-fiscal activities.

This included agriculture support schemes under which farmers obtained heavily-subsidised farm inputs.

The central bank also launched a number of other projects ostensibly to mitigate worsening poverty among Zimbabweans which the government blamed on sanctions.

In November last year, Cabinet approved the takeover of the $1,35 billion central bank debt by the government in a move that should pave the way for the smooth reapitalisation of the central bank and repayment of foreign currency account balances taken over during hyperinflation.

The government will assume the RBZ’s domestic debt of $754,3 million to add it to its existing domestic stock of $390 million, to give a total outstanding domestic stock of $1,1 billion.

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