Diaspora Kapita plans to list on Zimbabwe’s VFEX, targeting the diaspora for real estate investments. The initiative aims to generate a robust revenue stream through bond repayments and appeals to both institutional and retail investors. Founded by 13 Zimbabweans abroad, the company diversifies its investments across various sectors, collecting approximately $46 million annually in funeral premiums.
Diaspora Kapita, a company established by 13 Zimbabweans residing abroad, intends to list on the Victoria Falls Stock Exchange (VFEX) in Zimbabwe, which exclusively operates using the local dollar. Recently reported by The Herald, the organization aims to facilitate property purchases for Zimbabweans in the diaspora, thereby generating a sustainable foreign currency revenue stream through bond repayments. The initiative targets both institutional and retail investors, capitalizing on the robust diaspora community to bolster Zimbabwe’s economy.
The VFEX, launched two years ago, currently features approximately 15 listings and provides tax incentives and various advantages to its investors. Notably, it includes a substantial bond from Tharisa, a multi-metal miner listed on both the Johannesburg Stock Exchange and the London Stock Exchange, amounting to $50 million. Diaspora Kapita is strategically diversifying its investments across sectors such as financial services, insurance, agritech, and funeral services, currently collecting around $46 million annually in funeral premiums.
The development of the Victoria Falls Stock Exchange was a strategic response to enhance the investment landscape in Zimbabwe by creating a dollar-only environment, attracting investment from both local and international stakeholders. The VFEX has emerged as a pivotal platform for companies seeking to leverage the foreign investment potentials, particularly amidst economic challenges. Diaspora Kapita’s intent to engage the diaspora community in real estate investment aligns with broader efforts to stimulate the Zimbabwean economy through innovative financing mechanisms.
The listing of Diaspora Kapita on the VFEX represents a significant milestone in bridging the gap between Zimbabwe’s diaspora and its real estate sector. By targeting retail and institutional investors, this initiative not only seeks to bolster the country’s economic revenue through foreign investments but also fosters a sense of community among Zimbabweans living abroad. As the VFEX continues to evolve, such listings could redefine investment strategies in the region, enhancing economic stability in Zimbabwe.
Original Source: www.zawya.com
