Diaspora Kapita plans to list on Zimbabwe’s VFEX to enable expatriates to invest in local real estate. The initiative aims to attract institutional and retail investors while generating foreign currency through property purchases. The VFEX, launched two years ago, provides tax benefits for investors and currently lists around 15 entities, including a $50 million bond by Tharisa.
Diaspora Kapita is set to launch its listing on Zimbabwe’s Victoria Falls Stock Exchange (VFEX), which exclusively operates on a dollar basis. This initiative aims to facilitate the purchase of real estate by Zimbabweans residing abroad. The organization is targeting both institutional and retail investors, emphasizing a repayment model supported by fiscal contributions from diaspora communities acquiring properties. Vhusi Phiri, CEO of Diaspora Kapita, recently shared these insights at a meeting of the Association of Investment Managers of Zimbabwe held in Cape Town, South Africa.
The VFEX, which has approximately 15 listings and was inaugurated two years ago, provides various tax incentives and advantages for investors. Among its notable offerings is a $50 million bond issued by Tharisa, a multi-metal mining firm also listed on the Johannesburg Stock Exchange and the London Stock Exchange. Diaspora Kapita, established by 13 Zimbabweans living overseas, diversifies its investment portfolio to include financial services, insurance, agritech, and funeral services, generating about $46 million annually in funeral premiums.
The Victoria Falls Stock Exchange (VFEX) plays a pivotal role in the Zimbabwean economy by providing a platform for listing investment vehicles solely in U.S. dollars, enhancing currency stability in a country that has experienced economic challenges. Diaspora Kapita’s initiative highlights the growing trend of diaspora investments in Zimbabwe, reflecting a commitment from expatriates to contribute economic growth and development through real estate acquisition. Furthermore, the engagement of the diaspora in local investments underscores the potential for generating foreign currency and revitalizing the domestic market.
In conclusion, Diaspora Kapita’s forthcoming listing on the VFEX represents a strategic move to harness the resources of Zimbabweans abroad, channeling their investments into local real estate. The bond aimed at both institutional and retail investors not only reflects innovative funding methods but also promises a sustainable foreign currency revenue stream, reinforcing the economic bonds between Zimbabweans in the diaspora and their homeland.
Original Source: www.zawya.com
