BONI Highlights Regulatory Hurdles in Investrust Investment, Calls for Investor Confidence in Zambia

International bank BONI notes media coverage around the Company’s historical investment in Investrust Bank Plc (“Investrust”), a bank based in Zambia.

It has been widely reported and acknowledged by the Bank of Zambia, that regulatory delays meant BONI was never recognised as a shareholder in Investrust. This despite more than three years elapsing following the first purchase of shares.

Had BONI been allowed to take up an Investrust Board seat, to which it should have been entitled, new capital would have been brought into Investrust. Advanced discussions between BONI, Afreximbank and Investrust Senior Management to secure the investment were already in place and shared with ZCCM-IH, the largest shareholder of Investrust. This would have averted any crisis at Investrust at no cost to Government or the sacking of staff and disruption of so many lives.

BONI now sits at the centre of a dilemma. Despite purchase of shares since 2021 through registered broker Pangea Securities Limited on the Lusaka Securities Exchange (LuSE), the Bank of Zambia advised BONI, some three years later it is not and was never recognised as a shareholder.

The facts in the public domain are that BONI between 2021 and 2022, bought through a licensed regulated broker, Pangae Securities Limited, a significant shareholding in Investrust through the Lusaka Securities Exchange.

We are sensitive to the plight of the really hard-working professionals at Investrust that we’ve gotten to know over the years. Our prayers are with them and we wish each of them well.

What is clear here is that a mistake was made. We are in communication with relevant stakeholders and are confident that mechanisms for BONI to be fully compensated will be agreed by year end.

It is important that a line is drawn under this matter. Investors must feel comfortable and confident that their investment in Zambia remain safe and safe, at all times. Mr President has done a extraordinary job galvanising and reassuring the investment community that Zambia is open for business. His efforts underpin the current investment momentum Zambia is enjoying. This incident must not be allowed to fester and or pollute that investment narrative.

Its land-linked attributes and stable political environment, makes Zambia an extraordinary hub and provides an opportunity to reach 380 million regional consumers with its eight direct neighbours alone. These attributes were front and centre of our thinking when considering Investrust as an investment proposition.

– A Spokesperson for BONI

Zambia is ‘open for business’. That carries a responsibility to shield investors from being caught in the cross-fire of regulatory mistakes that call into question the fair treatment of investors and their investments, as well as the healthy operation of the Securities Exchange (LuSE) and the Securities Commission. Perception for investors is everything.