KEY POINTS

• The BONI Investrust dispute centers on shareholder recognition after a settled trade.
• BONI says liquidation erased its investment without compensation.
• The BONI Investrust dispute is testing Zambia’s investor credibility.

When Michael J. Prest’s BONI Global bought what it says was a 24.8 percent stake in Investrust Bank Plc on Zambia’s stock exchange in 2021, it expected a conventional entry into a listed lender.

The trade, BONI says, was executed through a licensed broker using the Lusaka Securities Exchange’s settlement system, with cash paid and shares transferred.

Almost four years on, that investment has become the center of a regulatory standoff. Zambia’s central bank declined to recognize BONI as a shareholder and later moved to liquidate Investrust, a sequence BONI says wiped out its holding and exposed weaknesses in investor protection.

How the BONI Investrust dispute began

BONI says it acquired the shares via Pangea Securities, a licensed intermediary, following exchange rules. The purchase formed part of a broader strategy that included discussions with African development finance institutions and a proposed partnership with an Asian financial-technology firm.

Because Investrust operates in a regulated sector, BONI was later told it required approval from the Bank of Zambia to formalize the stake. The firm says it submitted the necessary documentation and repeatedly sought clarity. Over roughly three years, BONI says, approval never came nor did board representation or formal shareholder recognition.

In January 2024, the central bank informed BONI it did not recognize the firm as a shareholder. Three months later, the regulator placed Investrust into liquidation. BONI says the move left it bearing the losses of an equity investor without the rights typically attached to ownership.

Why the BONI Investrust dispute matters

The case has drawn attention beyond Zambia, particularly in Nigeria’s investment circles, as African governments push for deeper intra-continental capital flows. President Hakainde Hichilema’s administration has marketed Zambia as a transparent, predictable destination for investors, a message reinforced during recent meetings in Lusaka with Nigerian business leaders including Aliko Dangote and Tony Elumelu.

According to Billionaires Africa, BONI is seeking a return of capital and compensation it estimates at about $40 million. The Bank of Zambia has declined to explain its decision, citing confidentiality rules, while the exchange and finance ministry have not commented.

Prest, 63, a former senior trader at Phibro Energy and Vitol and later chief executive of Marc Rich Investments, says the issue is not the existence of approval rules. For investors, he argues, uncertainty arises when authorities reject a settled transaction and fail to return the money.