Between 2012 and 2013, Steward Bank (previously known as TN Bank) recorded the largest losses among all banks in Zimbabwe, amounting to a staggering $42 million.Despite this, Econet went on to invest close to $75 million in the struggling bank to acquire and then recapitalise it, ultimately saving the bank from a potential collapse.
You make a good point - and although you intention was to provoke thought on the issue the article would have been even more useful if you:
(a) indicated why the investment was made - surely not only for the connections to the prominent lawyer.
(b) indicated whether the bank gained market share in the longer term and how did the investment ultimately work out (ie as a "foreign" readers we have no knowledge whether this was a successful investment or not;
(c) do you have other stories which illustrate the same point - either invite responses on that or undertake to investigate further and circle back.
Quite an eye-opening and thought-provoking piece. From facts on the ground across various industries, who backs you matters more than how good you are at what you do.
Mukoko, thanks. I was hoping to read about the financial performance of the bank during the period of backing by Econet and also why Econet sold it now. I guess it's for another day. Having one big backer is good in testing of financial challenges, however for sustainable business any business needs to be good. It must have good networks, customers and other key stakeholders.
You make a good point - and although you intention was to provoke thought on the issue the article would have been even more useful if you:
(a) indicated why the investment was made - surely not only for the connections to the prominent lawyer.
(b) indicated whether the bank gained market share in the longer term and how did the investment ultimately work out (ie as a "foreign" readers we have no knowledge whether this was a successful investment or not;
(c) do you have other stories which illustrate the same point - either invite responses on that or undertake to investigate further and circle back.
Regards
Graeme Fraser and Veldra Fraser
www.companylawtoday.co.za
email : legaleagles@srvalley.co.za
Quite an eye-opening and thought-provoking piece. From facts on the ground across various industries, who backs you matters more than how good you are at what you do.
Mukoko, thanks. I was hoping to read about the financial performance of the bank during the period of backing by Econet and also why Econet sold it now. I guess it's for another day. Having one big backer is good in testing of financial challenges, however for sustainable business any business needs to be good. It must have good networks, customers and other key stakeholders.