Foreign banks reach out to MMCZ

Foreign and local banks are looking to renew ties with the Minerals Marketing Corporation of Zimbabwe (MMCZ) after the US removed the state-owned minerals marketing agency from its sanctions list, an official has said.

“We had been left with only three banks but we are getting enquires with a number banks who want to engage us,” MMCZ acting general manager Dr Nomsa Moyo said.

In a move that has sparked mixed reactions, the US on March 5, 2024, took a two-pronged approach towards Zimbabwe by lifting sanctions on individuals and entities while simultaneously imposing fresh restrictive measures on 11 individuals, including President Mnangagwa, under their Global Magnitsky programme.

While the recent easing of some restrictions offers a glimmer of hope, the Zimbabwe Economic Recovery and Development Act (ZIDERA) remains in place.

The U.S, alongside its western allies and Zimbabwe have had a tense relationship since the turn of the millennium, marked by sanctions imposed by America over alleged human rights concerns.

“International banks are also enquiring how to get back,” said Dr Moyo. “We are not yet fully sure (on the sincerity), but we see the light at the end of the tunnel.”

The lifting of sanctions on the MMCZ represents a positive step and the corporation sees it as a sign of potential improvement. This development could allow the MMCZ to resume normal business operations and facilitate the export of Zimbabwe’s minerals, ultimately contributing to the country’s economic recovery.

Established in 1983, the MMCZ acts as the sole marketing and selling agent for most of the country’s minerals, excluding gold and silver. However, the US sanctions heavily restricted the MMCZ’s ability to conduct international business transactions due to limitations imposed on financial institutions dealing with sanctioned entities.-ebusinessweekly