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ZIMBABWEANS should not panic over Barclays Bank Plc’s plan to pull out as the move has no cautionary effect on the stability of country’s financial services sector, analysts said.

The news about the pullout had provoked speculation that Barclays depositors would withdraw their money from the bank in panic.

Yesterday Barclays Zimbabwe said its parent company has transferred the local unit to non-core division, with an intention to sell in the future.

The international bank also said it would not combine Barclays Zimbabwe with Barclays Africa although insisting the business no longer fits into its core strategy.

It has, however, committed to servicing the Zimbabwean financial services sector. “It’s important to note that at this time, all that has been done by Barclays Plc is to announce their intention to sell their stake in this business. We’ll continue to focus on providing customers and clients with the high standards of service, which they expect and will update them as and when there’s anything to communicate,” said Barclays Zimbabwe in a statement.

Barclays has confirmed plans to sell its 62,3 percent stake in Barclays Africa Group and the intention to focus on the United States and British markets. The move would see Barclays ending its 104 year history in Zimbabwe where it has a 68 percent controlling stake.

However, economic analysts said the proposal should be carefully understood to avoid unnerving the market.

“Zimbabwean depositors need not panic because there’s no cautionary statement about the pullout on the local market,” economic analyst Reginald Shoko said.

“The move by Barclays seems to be driven more by the economic downturn in South Africa. Hence the pullout is not immediate but a structured process. This means the local unit here (Zimbabwe) has more time to look for partners for continue operations.”

Given the fact that Zimbabwe was already using an international currency (US$) under the multiple currency system, Shoko explained, the country will continue to enjoy financial stability whether or not Barclays exits the market.

He, however, warned the international bank’s pullout might compromise foreign direct investment in Zimbabwe and Africa at large.

“Investors have a tendency to follow trends. European investors in particular prefer working with these international banks when they come to Africa and in this case, Barclays’ exit could jeopardise this,” he warned.

Meanwhile, the local unit has announced plans to open newly refurbished branch in Kadoma on the back of a re-launch of JMN Nkomo branch in Bulawayo.

The bank recently launched Cashsend on mobile banking platforms, Cashback on Point of Sale,

Box Office and DSTV payments on Internet Banking and Hello Money. It has also added Hospital Cash Back and Education Protection Plan Insurance products to its existing portfolio of protecting products in partnership with Zimnat.

It is also in the process of rolling paperless transactions in all its branches with a unique signature pad as well as opening accounts remotely on iPad.