HomeBanks & BankingUS lifts sanctions on ZB, IDC

US lifts sanctions on ZB, IDC

THE Office of Foreign Assets (Ofac) of the US department of treasury has removed ZB Financial Holdings and Industry Development Corporation ( IDC) from the list of sanctions as relations between Harare and Washington thaw.

Ofac has however maintained restrictions on President Robert Mugabe and his wife Grace .

The United States implemented the targeted sanctions on Mugabe, his cronies in 2003 on alleged human rights violations committed after the chaotic land reform exercise and election fraud. Harare denies the charges.

The removal of sanctions will unlock the corporate’s potential to attract lines of credit.

Other companies removed from the sanction list include Chemplex Corporation Ltd, Zimbabwe Fertiliser Company.

Companies under sanctions experience serious problems in obtaining offshore financing or credit guarantees.

Economist Vince Museve said the removal of sanctions was a good development but government must address economic and political reforms.

“That’s good. No more using excuses of sanctions for non delivery! However issue is corruption of State enterprises and lack of liquidity. So removal of sanctions will not result in new investments until we address economic and political reforms,” he said.-Fidelity Mhlanga

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