By Davison Vandira
The launch of the country’s fourth Exchange Traded Fund this Thursday has been praised as an indication of increased domestic capital formation expected to inspire economic activities for enhanced growth.
The new kid on the block – Made in Zimbabwe Exchange Traded Fund by Morgan and Company – for diversified investment, is specifically feeding into the country’s Local Content Strategy.
The actively managed Exchange Traded Fund is also in line with objectives of the National Development Strategy One (NDS1) which is enthusiastic about creating efficient capital markets to support attainment of vision 2030.
Buy Zimbabwe General Manager, Mr Alois Burutsa described the move as a positive development in the country’s capital formation and wealth creation targeting local companies.
“The increased offering of ETFs on the investment arena is very encouraging especially for an economy like Zimbabwe that is seeking a sustainable growth path especially by producing its own needs,” he said.
Director in the Ministry of Industry and Commerce, Mrs Bridget Dzimwasha welcomed the Made in Zimbabwe Exchange Traded Fund saying it will give impetus to the re-industrialisation agenda.
She noted, “This is a step in the right direction where retail investment is being strengthened to leverage on resources that are idle, from an understanding that the Central Bank estimates that about US$2 billion remains untapped capital in people’s homes.”
Economists believe Zimbabwe requires patient capital to spearhead the country’s economic development matrix, underpinned by NDS1 objectives.