Paynet and Adviser Update

RNS Number : 1441I

Cambria Africa PLC

06 August 2019

 

Cambria Africa Plc

("Cambria" or "the Company")

Paynet and Adviser Update

Paynet Update

Further to the announcement of 4 July, the Company confirms that  its legal representatives Titan Law, served summons on the Bankers Association of Zimbabwe (BAZ) on behalf of Paynet Zimbabwe and Payserv Africa  seeking damages of US $100 million from BAZ and related parties. The Company has been notified that BAZ entered an appearance to defend. 

Payserv Africa has sent all banks a copy of their outstanding invoices reminding them that upon payment, they will be able to transact through the Paynet platform.  Despite the fact that Paynet does not charge for receiving interbank payments, and supports all bank gateways even if suspended, most banks have closed their Paynet gateway stopping compliant banks from transacting with them. Paynet Zimbabwe has reminded banks which have closed their gateways that it services these gateways free of charge. 

Paynet Zimbabwe has also protested to the Reserve Bank of Zimbabwe that the closing of the gateways disturbs the orderly flow of payments by compliant banks. This is especially true in absence of a meaningful alternative automated bulk payment system. The banks have failed to deploy an automated bulk payment system since Payserv Africa suspended most banks for non-payment on 10 June.

So far as the Company and Paynet are concerned, the development of an alternative system seems shrouded in secrecy, apparently to the specific and punitive exclusion of Paynet. The Company is not aware that there has been any disclosure by banks of the ownership, directorship, or developers of such a platform and it would seem to the Company that none of the 4,500 installations of Paynet have yet been replaced by the new system.

In the meantime, Paynet continues to perfect its bulk payment interface with EcoCash, Zimbabwe's largest mobile payment system controlling approximately 80% of the volume of national payments according to the latest statistics published by the Reserve Bank of Zimbabwe. The Company is negotiating a proposed commercial arrangement with EcoCash and believes if former users of its software turn to EcoCash for bulk payments, it will be able to recover some of the lost revenue from what the Company sees as the collusive and vindictive actions it has suffered at the hands of the BAZ and under the watch of the Banking Regulator.

If not successful, Cambria will need to significantly downsize its operations in Zimbabwe as it continues to pursue its legal recourse through the courts of Zimbabwe and potentially South Africa and the United Kingdom.

The Company's CEO, Samir Shasha will be available in London from 12-15 August to meet with shareholders by appointment.  Shareholders can reach Mr. Shasha on his UK mobile [phone]. The Company will continue to update the market on material developments in due course.

Adviser Update

The Company confirms that SVS Securities Plc, as a result of its market access being suspended by the LSE, no longer acts as broker to the Company.

WH Ireland Limited is the Company's sole broker and nominated adviser.

Contacts
Cambria Africa Plc:	www.cambriaafrica.com
Samir Shasha	+44 (0)  20 3287 8814
WH Ireland Limited:	www.wh-ireland.co.uk
James Joyce / Matthew Chan	[phone]

 

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