SA, Zim sign investment protection deal

Mark Tunmer, the chief executive of the Botswana-registered group, said: “The long-awaited bilateral arrangement between the governments of South Africa and Zimbabwe gives South African investors the reassurance they need that their investments will be respected and not subject to possible forfeiture.

“Essentially, they now know they can put money in, earn returns, enjoy capital growth and get their money out. This is hugely significant for Zimbabwe as South Africans are significant investors in sub-Saharan Africa, but for years have shied away from Zimbabwe because of political risk.

“Now the South African investment tap can be turned on there is every prospect that well managed Zimbabwean businesses known for strong earnings growth could soon have access to the funding they desperately need. This deal could be the most significant initiative since dollarisation.”

Imara runs a Zimbabwe equity investment fund targeted at international investors while Zimbabwean equities are represented in its flagship African Opportunities Fund. It also has a corporate advisory team on the ground and is a broker on the Zimbabwe stock exchange.

The first international investment conference in Zimbabwe since the formation of an inclusive government was organised in June by Imara, its Zimbabwe subsidiaries and Auerbach Grayson, the New York stockbrokers that have long worked with Imara to take Zimbabwe's investment case to US investors.

To maintain international investor interest, Imara followed up by organising a second investment indaba in London in September 2009.

“We reached numerous off-shore fund managers and professional investors,” said Tunmer. “The missing piece of the puzzle was the South African investment market. That may soon open up as the investment protection agreement between the two governments appears to address all key concerns. We will be studying the small print in the next few days.

“We're delighted by the signing and stand ready to do everything we can to facilitate investment in Zimbabwe. We see the Zimbabwean market as the key to the entire region's prosperity. We anticipate strong investor interest in view of value opportunities and prospects for sustained growth.”