Mnangagwa’s Handpicked Investors Take Over POSB
President Emmerson Mnangagwa has reportedly ordered the sale of the People’s Own Savings Bank (POSB) to a consortium led by ZANU PF-supporting cleric Morris Brown Gwedegwe.
According to ZimLive, the sale went ahead despite advice from the Zimbabwe Investment and Development Agency (ZIDA), which raised concerns about the source of funds for Gwedegwe’s Hebrew Investment Group.
POSB, now under the Mutapa Investment Fund, is one of several government-owned parastatals being sold off.
Instead of opening the sale to public bids, Mnangagwa, through Attorney General Virginia Mabiza, chose Hebrew Investment Group as the investment partner.
Under the terms of the deal, Hebrew Investment Group will acquire 70% of POSB by contributing US$70 million of the US$100 million needed to recapitalize the bank.
The Zimbabwe government will keep a 10% stake, funded through existing POSB assets, while the remaining 20% will be financed by private individuals.
A joint venture agreement signed between Mabiza and Hebrew Investment Group CEO Professor Emile Kue on December 18, 2024, also includes a US$6 billion loan from Hebrew Investment Group to the Zimbabwe government.
The loan, with a 0.3% interest rate per year, will be repaid over 30 years using dividends from the government’s POSB shareholding.
ZimLive reports that ZIDA questioned the legitimacy of the company’s funds and tried to delay the signing of the agreement, but Mnangagwa and Mabiza pushed it through.
Gwedegwe, a former Anglican bishop who was expelled over alleged embezzlement, was appointed to the Zimbabwe Defence Commission by Mnangagwa in May 2019.
Last year, the Zimbabwe Council of Churches distanced itself from Gwedegwe after he attended the ZANU PF annual conference in Bulawayo, claiming to represent the council.
Questions from ZimLive to Attorney General Mabiza had not been answered at the time of reporting.
