Diaspora Kapita intends to list on Zimbabwe’s VFEX to facilitate real estate investments for expatriates. The CEO emphasizes the bond will attract investors using funds from property purchases, creating a strong foreign currency revenue stream. The VFEX, launched two years ago, offers tax benefits and has roughly 15 listings, including a notable $50 million bond from Tharisa. Founded by 13 Zimbabweans abroad, Diaspora Kapita operates across various sectors and collects $46 million annually in funeral premiums.
Diaspora Kapita is poised to list on Zimbabwe’s Victoria Falls Stock Exchange (VFEX), primarily aimed at enabling Zimbabweans residing abroad to invest in real estate back home. According to Vhusi Phiri, the CEO of Diaspora Kapita, the initiative will concentrate on attracting institutional and retail investors with a bond repayment structure anchored in property acquisitions by diaspora communities. This approach is expected to generate a significant foreign currency revenue stream, benefiting both investors and the local economy.
The VFEX, established two years ago, has garnered attention with roughly 15 listings and provides tax incentives that enhance its appeal to investors. A notable entry in the exchange includes Tharisa, a multi-metal mining company that has raised $50 million and is also listed on the Johannesburg Stock Exchange and the London Stock Exchange.
Diaspora Kapita was founded by a group of 13 Zimbabweans based internationally and has diversified investments across sectors such as financial services, agritech, insurance, and funeral services, garnering approximately $46 million in annual funeral premiums. The forthcoming bond represents a strategic move to deepen investments from the Zimbabwean diaspora and support property ownership within their home country.
The initiative by Diaspora Kapita to list on the VFEX reflects a broader trend of leveraging the financial capabilities of the Zimbabwean diaspora to support national development initiatives. With many Zimbabweans living and working overseas, there exists a significant potential to channel these remittances into productive investments back home. The VFEX was created as part of efforts to facilitate this process, providing incentives and opportunities for investment that align with Zimbabwe’s economic recovery objectives.
In summary, Diaspora Kapita’s forthcoming listing on the VFEX marks a significant advancement in enabling the Zimbabwean diaspora to make impactful investments in their homeland. By focusing on real estate acquisitions and implementing a strategic repayment framework through bond offerings, this venture seeks not only to bolster foreign exchange inflows but also to enhance the financial stability of Zimbabwean expatriates and their families. The successful execution of this plan could potentially stimulate broader investment opportunities through the VFEX.
Original Source: www.zawya.com
