By Davison Vandira
THE government’s investment drive has revitalised previously dormant capital markets in the country’s quest to attract sustainable long term funding for business in line with national economic development aspirations.
In pursuit of broadening financial streams into the country, the government launched the foreign currency-denominated Victoria Falls Stock Exchange, digitalised the Zimbabwe Stock Exchange and recently launched the agricultural commodities exchange.
All these platforms have strengthened the country’s attraction to fresh capital.
The Minister of Finance and Economic Development Professor Mthuli Ncube who held an Investment Road Show in New York revealed through his Twitter account that the government has floated a US$200 million bond on the Victoria Falls Stock Exchange with a yield of between six to nine percent to lure global investors.
Investment managers have since commended government efforts to revitalise the country’s capital markets as a reliable source of financing economic needs.
“The government has made tremendous progress in providing platforms within the country’s capital markets system by providing the VFEX which is a sustainable investment vehicle that needs to be exploited,” said Batanai Matsika, an Investment Manager.
“Zimbabwe like many other economies is now in a position to provide better options in the Capital Markets perspective as well as the commodities exchange arena, with an increased information dissemination mechanism Zimbabwe will sooner than later attract enough capital to cater for its economic needs,” said Kudakwashe Mugova, an Economic Analyst.
Sustained government efforts in attracting investment in the country have been cited by economists as a necessary step to national economic development.