Zimbabwe

January 2005

  
Many investment opportunities for those in diaspora, (Financial Gazette Online, 2005-01-20):-Inquiries continue to be received from Zimbabweans living abroad about investment opportunities that they can take advantage of. There are many of them. Probably the best investment opportunity for those who simply wish to earn interest on a money investment, as opposed to, for instance, investing in property or a business is the Foreign Currency Denominated Bond. The Foreign Currency Denominated Bond is a bond issued by the Reserve Bank of Zimbabwe for those who wish to invest some of their foreign currency in a bond that offers a good interest rate. The bond is a 12-month bond. Interest, as well as the capital sum, is paid to the bondholder at the end of the investment period in foreign currency by telegraphic transfer through the investor’s designated account. The interest rate is 12 months Libor (London Inter-Bank Offered Rate) plus six percentage points per annum. The bond is guaranteed by the Reserve Bank for full settlement of principal plus interest in foreign currency on the maturity date. Subscriptions must be for amounts of not less than US$1 000. The bonds are issued in denominations of US$100, US$200, US$500, US$1 000, US$5 000 and US$10 000. Investors are free to choose the denominations they prefer. The prospectus and application forms are available at the Reserve Bank of Zimbabwe offices, some Zimbabwean embassies, the Reserve Bank website (www.rbz.co.zw) and the Homelink website, which is www.homelinkzimbabwe.com. The closing date given in the prospectus on the websites was amended. This was the closing date for the first batch of bonds. However, the same application form can be used for the current bonds. The completed application form should be sent to the Reserve Bank at the address indicated on the prospectus. Payment can be made by bank draft made payable to the Reserve Bank of Zimbabwe or by telegraphic transfer. Details of the designated accounts through which the telegraphic transfers can be obtained from the Reserve Bank’s Financial Markets Division (telephone 263-4-703000) or the Homelink Centre (telephone 791158, 795224 or 799706). Those remitting funds through telegraphic transfer are advised to instruct their bankers to do an MT100 Customer Transfer Message, as using this type of funds transfer ensures there are no delays in applying the funds and issuing the bonds. The bonds are an excellent investment because of the competitive interest rates, the security attached to Reserve Bank of Zimbabwe bonds, the payment of interest in foreign currency and the remittance of the interest and capital to the bondholder’s designated account anywhere in the world. The bonds are bearer instruments. This means that an investor can sell his bonds to someone else if he needs the funds before the maturity date. However, it also means that the bonds must be treated as cash and kept securely, as it is the person who actually holds the bonds who is entitled to the interest and repayment of capital when the investment matures. The bonds were launched last year in response to requests from Zimbabweans living abroad for investment instruments geared to their needs. However, the bonds are open to anyone who has foreign currency to invest, whether they are non-resident Zimbabweans, foreign investors or Zimbabweans residing in Zimbabwe who have foreign currency they wish to invest. Other investment opportunities available to Zimbabweans living abroad include business investments. Those who wish to make a business investment can do so knowing that, provided the capital invested comes from outside the country and this is made known to the authorities from the outset, they can remit their dividends and profits to their country of residence. Should they decide to disinvest, they can likewise remit to their country of residence the disinvestments proceeds. Zimbabweans living abroad can also invest in existing companies in Zimbabwe. They can purchase up to 70 percent of the shares in a company listed on the Zimbabwe stock exchange and 100 percent of the shares in non-listed companies. They can purchase shares in even blue-chip companies in Zimbabwe for a moderate outlay in British pounds or United States dollars. Details of share prices on the Zimbabwe Stock Exchange are published in major Zimbabwe newspapers and are also available from the bourse. The purchase of shares can be arranged through stockbrokers. The investment opportunities available to Zimbabweans living abroad are many. The Reserve Bank's Homelink Centre is happy to assist those who wish to take advantage of these opportunities.  
South African Migration Project (SAMP) - Queen's University - http://www.queensu.ca/samp