Diaspora Kapita, founded by Zimbabweans abroad, plans to list on the VFEX to enable diaspora investments in Zimbabwe’s real estate market. The initiative involves issuing bonds repayable through property purchases, enhancing foreign currency revenue for investors.
Diaspora Kapita, a company established by a group of 13 Zimbabweans living abroad, is set to make its debut on Zimbabwe’s Victoria Falls Stock Exchange (VFEX), a platform that exclusively operates in foreign currencies. The primary aim of Diaspora Kapita is to facilitate investments by Zimbabweans in the diaspora, enabling them to purchase real estate in their home country. As part of this initiative, the company intends to generate a robust revenue stream by offering bonds targeted at both institutional and retail investors. Vhusi Phiri, the CEO of Diaspora Kapita, highlighted that the repayment of these bonds will be sourced from the proceeds of property purchases made by diaspora communities, thereby enhancing foreign currency inflow into Zimbabwe.
The Victoria Falls Stock Exchange was launched two years ago and has garnered approximately 15 listings, offering various tax incentives and benefits to investors. Notably, the exchange has successfully attracted significant investments, such as a $50 million bond issued by Tharisa, a multi-metal miner listed on both the Johannesburg Stock Exchange and the London Stock Exchange. Diaspora Kapita’s focus on real estate investment by expatriates not only aims to bolster the Zimbabwean economy but also seeks to create a stable revenue source for its investors.
In summary, Diaspora Kapita’s forthcoming listing on the VFEX signifies a significant step towards enabling Zimbabweans abroad to invest back home, particularly in real estate. By proposing a bond structure supported by diaspora communities’ property acquisitions, the company aims to create a sustainable foreign currency revenue stream. This initiative reflects a broader trend of leveraging diaspora investments to foster economic development in Zimbabwe, while also providing attractive opportunities for investors.
Original Source: www.zawya.com
