Zambia’s drive to attract intra-African investment faces scrutiny following a dispute between Nigerian-linked investment firm BONI Global and the Bank of Zambia (BoZ).
The matter has drawn attention from regional and international financial circles as Zambia seeks to position itself as a hub for African capital and high-profile investors.
BONI Global, led by investor Michael J. Prest, acquired a 24.8% stake in Investrust Bank Plc in 2021 through Pangea Securities on the Lusaka Securities Exchange (LuSE). The firm maintains the purchase complied with LuSE trading and settlement rules.
“The transaction was executed in compliance with Lusaka Securities Exchange trading and settlement rules,” BONI said.
However, Investrust Bank, as a regulated financial institution, required approval from the Bank of Zambia for BONI’s shareholding to be formally recognised. BONI says it sought regulatory clearance and followed up repeatedly, but BoZ declined approval.
In January 2024, BoZ informed BONI that it did not recognise the firm as a shareholder, and by April 2024, Investrust Bank was placed into liquidation. BONI contends that it was not treated as a recognised shareholder during this period, effectively extinguishing the economic value of its investment.
Legal experts note that while regulatory approval regimes are common, clarity around investor protections and remedies is essential. BONI has indicated a compensation claim of approximately US$40 million, arguing that regulatory uncertainty and subsequent liquidation left it without recourse.
Neither the Bank of Zambia nor the Lusaka Securities Exchange has publicly commented on the compensation claim.
The dispute has raised broader questions for Zambia’s investment climate. President Hakainde Hichilema has repeatedly emphasised transparency, predictability, and institutional reform, but how the BONI–Investrust case is resolved may shape investor confidence across African financial markets.
Erizia Rubyjeana
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