Nigerian investor Michael J. Prest has achieved a significant legal win in Zambia after the High Court rejected two attempts by the Bank of Zambia to block his challenge over the liquidation of Investrust Bank Plc, as reported by BONITS.
Prest’s investment vehicle, Bank of Nevis International Limited (BONI), acquired a 24.8% stake in the bank through the Lusaka Securities Exchange in 2021.
However, the Bank of Zambia later refused to recognize the shares, leaving Prest unable to exercise ownership rights. Months later, the bank was placed into liquidation, wiping out the investment entirely without compensation.
In two separate rulings, Justice Charles Zulu dismissed the central bank’s claims, allowing BONI’s judicial review to proceed and ordering costs against the regulator. The decisions have reignited international scrutiny of Zambia’s regulatory framework and investor protection standards.
International lawyer Robert Amsterdam of Amsterdam & Partners described the liquidation as “a tragic story and an own goal for Zambia,” emphasizing the broader implications for investor confidence. He estimated potential damages could reach $40 million, covering the lost investment and opportunity costs.
Prest’s case is now widely regarded as a test of regulatory transparency in Zambia, highlighting the importance of predictable legal outcomes for investors and the future flow of capital in the region.
