'Zim an attractive prospect,' says Imara

Published: 23 April 2014

Stockbrokers Imara Edwards Zimbabwe say that Zimbabwe is at an opportune moment to attract foreign investment.

Imara is one of the largest asset managers in Zimbabwe, managing segregated portfolios for Zimbabwe corporate pension funds as well as high net worth individuals, trusts and charities.

Imara believes timing factors help underpin interest by portfolio managers looking for value opportunities.

Imara executive director Tino Kambasha said foreign investors typically enter markets when they are depressed.

He added that the predominant use of the United States dollar removed the threat of currency risk for investors making Zimbabwe ideal for investment.

"Some analysts speculate that 2014 represents the low point in Zimbabwe's long-term economic cycle. Any investor is interested at getting in at the bottom of the country's economy.

"Local consumer demand has recently slackened while the strength of the US dollar puts growing pressure on the trading environment for most businesses in Zimbabwe.

However, dollarisation removes currency risk for foreign investors - another factor for those looking for value in a market with big upside potential," said Kambasha.

This probably explains why foreign investors continue to dominate trading on the Zimbabwe Stock Exchange.

Economist analyst Joseph Sagwati says every investment decision is a function of an appreciation of the business environment now and into the future given by all manner of factors impacting on the operational environment.

Meanwhile, Imara will host the inaugural Zimbabwe Investment Indaba from May 27 to May 30 in Harare with the aim of promoting Zimbabwe an investment hub.

Kambasha said that the conference presents an opportunity to scrutinise the entire spectrum of the Zimbabwe economy at one event.

He added that international fund managers from America, Europe and Asia will attend the event in Harare.
- BH24