Story by Stanley James, Business Editor
THE capital raising plan for Zimbabweans living abroad is on track, with a South African-based diaspora-backed firm set to list on the Victoria Falls Stock Exchange (VFEX) next month.
A presentation of the capital raising plan for Zimbabweans in the diaspora held on Wednesday night indicates Diaspora Kapita will list on the VFEX through reverse listing of its parent entity BrigdgeFort Capital, currently listed on the Zimbabwe Stock Exchange.
Sources close to the transaction revealed that proposals for listing are now awaiting approval from regulatory authorities.
The listing, which shows confidence in Zimbabwe’s capital markets, is expected to attract more funding from Zimbabweans living abroad.
BrigdgeFort Capital’s chairperson, Dr Christian Beddies said, “The potential is there, so it is up to the relevant authorities to assess our plans and give us the go-ahead in a move we believe shall further spur Zimbabwe’s drive to boost investment inflows, mainly focusing on Zimbabweans living abroad.”
With central bank data showing diaspora remittances to Zimbabwe are averaging over three billion United States dollars per year, the company’s listing is expected to position the country as a haven for global capital flows.
“There is a lot that is happening and we anticipate such developments to further scale up our business portfolio in Zimbabwe aided by the need to tap into the diaspora market which is the flagship of our business portfolios,” Diaspora Kapita’s Incoming Chief Executive Officer Mr Vusi Phiri said.
The VFEX, whose trading is in United States dollars was created by the government to attract foreign currency-generating entities that need to raise more capital for expansion is also expected to create better returns to shareholders.
