Bank of Nevis International (BONI) has filed for judicial review against the Bank of Zambia, the country’s finance minister and attorney general, claiming regulators unlawfully refused to recognise its 24.8% stake in Investrust Bank before the lender was placed into liquidation in 2024. The case was filed on 22 July, with a hearing expected in 2027.
The dispute goes beyond one failed bank.
At a time when African governments are competing for foreign investment, the case highlights a broader concern among international investors: whether regulatory decisions can undermine legally acquired investments after capital has already been committed.
A multi-million-dollar investment that never gained recognition
According to court filings, BONI bought its stake in Investrust Bank between March 2021 and November 2022 through a licensed broker on the Lusaka Securities Exchange, making it the lender’s second-largest shareholder.
The bank says it spent nearly two years trying to have the holding formally registered by regulators but never received recognition.
BONI argues that the refusal prevented it from exercising shareholder rights, appointing directors or participating in efforts to recapitalise the struggling lender before it was declared insolvent.
The bank is now seeking $40 million (about N61.4 billion) in compensation, arguing that the regulator’s actions destroyed the value of its investment and denied it the opportunity to help rescue Investrust.
The lawsuit follows three unsuccessful attempts by Zambia’s central bank to stop the matter from reaching court. Zambia’s High Court rejected the latest application in June after dismissing two earlier procedural challenges in late 2025.
Zambia defends the liquidation
The Bank of Zambia has not publicly responded to the latest court filing.
However, in a statement issued on 14 July, the central bank said Investrust was taken over under the Banking and Financial Services Act because it had become insolvent and no longer had enough assets to meet its obligations.
The regulator said it remains committed to conducting the liquidation “transparently, fairly and lawfully” while settling claims in line with Zambia’s legal framework.
The allegations made by BONI have not been tested in court, and the Bank of Zambia has yet to file its substantive defence.
A lawyer known for taking on governments
BONI has hired international lawyer Robert Amsterdam, founder of Amsterdam & Partners, whose previous clients include former Russian oil executive Mikhail Khodorkovsky and former Thai Prime Minister Thaksin Shinawatra.
Amsterdam argues that the regulator’s repeated attempts to prevent the case from being heard reflect the seriousness of the underlying dispute rather than weaknesses in BONI’s legal arguments.
Born in Nigeria’s Delta State, Michael Prest built his career in global commodities trading, working at Phibro Energy, Vitol and later serving as chief executive of Marc Rich Investments.
He later founded Petrodel Resources, expanding into oil exploration in Tanzania and Zambia before moving into renewable energy through a partnership with Canadian solar developer SkyPower.
Prest acquired the banking operations of Bank of Nevis International in 2019, later rebranding the institution as BONI.
The bank has since entered a trade finance partnership with Afreximbank aimed at strengthening commercial links between Africa and the Caribbean.
The businessman is also familiar with regulatory disputes. Earlier this year, the Eastern Caribbean Supreme Court of Appeal ruled that the island’s banking regulator had acted without lawful authority when it imposed fines on BONI.
The lawsuit arrives as Zambia continues efforts to attract foreign capital following years of economic reforms and debt restructuring.
While the country has positioned itself as an investment destination, disputes involving shareholder rights and regulatory certainty are closely watched by international investors assessing political and legal risk.
The outcome could influence perceptions of investor protection not only in Zambia but across African financial markets seeking to attract long-term international capital.
