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National Merchant Bank of Zimbabwe (NMBZ), founded in 1992, was the first new merchant bank to be formed in Zimbabwe following independence in 1980. It was also the first merchant bank to be established by Black Zimbabweans. Following successful early operations it was floated on both the Harare and London Stock Exchange in April 1997. The case study describes the issues faced by the Bank in early 1998. The Chief Executive of the Bank had ambitious growth plans, but faced a deteriorating economic and political environment. The external factors had caused the share price to fall significantly since being listed. There has also been a significant increase in the number of competitors, with the doubling of merchant banks in Zimbabwe between 1992 and 1997. The Chief Executive must decide whether to continue with their growth plans, or face a period of consolidation until the economic and political situations stabilise. There is a condensed version of this case available (399-120-1).