eBusiness Weekly
Tawanda Musarurwa
HARARE – Financial Markets Indaba has embarked on a program to promote Zimbabwe-based mining projects to list on the Johannesburg Stock Exchange (JSE) and the London Stock Exchange Alternative Investments Markets (AIM).
Financial Markets Indaba is a private sector-led forum designed to help institutional and private investors with an interest in Zimbabwe to connect with credible local partners.
Through an investment roundtable to be hosted in London on October 8, the forum is targeting brownfield assets mostly producing gold and coal commodities and with an operational history.
Financial Markets Africa business development executive Patrick Muzondo said at least 12 Zimbabwean projects had been identified for the initiative.
“The public listing programme is an initiative led by Emergent Capital Management and Khanda Capital targeting Zimbabwe gold assets to be listed on AIM and JSE to raise capital.
“The partnership has identified at least twelve qualifying gold projects in Zimbabwe that meet the listing threshold.
In parallel, the team has also engaged with likely listing underwriters and investors in both Johannesburg and London, he said.
Investors are turning their attention to Zimbabwean mining assets because the most important risks to resources investment in Africa; expropriation and indigenisation have been conclusively dealt with.
Changes to the country’s Constitution removing indigenisation ownership thresholds from all minerals save diamonds and platinum mean that mining assets have become attractive relative to the South African current environment.
Zimbabwe also has a less restrictive labour market, shallower and less costly mines and generally a supportive government make Zimbabwe preferable.
The Zimbabwe Government also currently provides gold producers with 70 percent of their receipts in US dollar currency in cash. The balance is transferred to local bank accounts. Government is working towards increasing the 70 percent cash payment. This eliminates currency risk to international investors.
“This has provided an image of investment readiness and increases appetite for Zimbabwe assets or companies by international investors. The investment roadshows Integrate Zimbabwe with global markets by providing a platform where Zimbabwe gold producers can meet and engage directly with a broader investment community in centres such as London and Johannesburg, Zimbabwean capital markets are becoming connected with global markets, which opens opportunities for further investment activity in all sectors,” said Muzondo.
According to the organisers, the October 8 meeting will host mining investment roundtables with AIM stock exchange officials and mining investors who invest in Africa’s mining projects via AIM.
“These interactions will also draw remote participants via a dial-in service. The roundtables will take place at the iconic Thomson Reuters Building in the heart of Canary Wharf- London’s new investment and financial district.
“This program is important for the economy of Zimbabwe because it aids in raising capital on both JSE and AIM, helping gold producers to recapitalise and increase production.
“It also raises the profile of Zimbabwe as a favourable investment destination. A listing on AIM or JSE helps to increase visibility of Zimbabwe on the major stock exchanges,” added Muzondo.
Over the last three years, Financial Markets Indaba conferences have convened over 250 C-suite level speakers in banking, asset management, mining, private equity, agriculture, development finance industry and others on eight Zimbabwe-focused meetings.
