Harare – London Stock Exchange-listed Cambria Africa, parent to Paynet Zimbabwe’s share price tumbled by 30% from 0.93 cents per share to 0.65c/s amid payment stalemate that saw Paynet switch off Zimbabwean banks over a debt of US$470 000 and the discontinuation of its bulk payment services to local banks.
Cambria Africa is an investment company with two wholly owned operations in Zimbabwe, payment service provider Payserv and industrial equipment supplier Millchem.
Payserv in turn has four business units, Paynet Zimbabwe, AutoPay, Loanserv and Softserv.
Quite a number of bulk transactions were stalled following the stalemate including top banks like CBZ, CABS, Nedbank and Standard Chartered.
Paynet has since announced that it has commenced legal action against the Bankers Association of Zimbabwe (BAZ) for anti-competitive practices seeking damages amounting to US$100 million.
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment.