Mnangagwa Eats Humble Pie, Reverses Lending Ban.

President Emmerson Mnangagwa

The government of President Emmerson Mnangagwa has succumbed to pressure from business and reversed it’s May 7 lending ban.

In a statement today, Reserve Bank Governor Dr John Mangudya announced the lifting of the lending ban saying, “the lifting of the ban doesn’t apply to to those entities that are under investigation by the Financial Intelligence Unit.”

The move comes after Banks and companies warned that the move threatened their survival.

The RBZ had said that the ban was meant to stabilize the local currency.

On May 7, President Emmerson Mnangagwa announced the suspension of all lending by financial institutions. The move sent shockwaves in the economy as captains of industry rang the alarm bells, warning that the move would harm business as bank finance was its lifeline.

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