THE Ministry of Youth Development and Economic Empowerment has engaged fund managers to help unlock value from assets worth close to $2 billion acquired through the indigenisation programme.
Report by Victoria Mtomba
A fund manager is the person(s) responsible for implementing a fund’s investing strategy and managing its portfolio trading activities.
Speaking at a breakfast meeting in Harare yesterday Indigenisation minister Saviour Kasukuwere said fund managers should embrace the opportunity and participate in contributing positively towards economic development.
“That is where the asset management industry in this country will thrive, managing hundreds of millions, if not a couple of billions each.
“Right now, if it was possible to divide the almost $2 billion NIEEF Fund among the 16 registered fund managers in Zimbabwe each of you would be potentially looking at an asset book of not less than $100 million.
That’s real work guys,” Kasukuwere said.
“What we are saying in short is indigenisation is claiming a stake in future Gross Domestic Product produced by the country.
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“If those profits start accruing to Zimbabwean then our national income and therefore GDP will grow.
Those profits will drive investment and consumption in the economy, fuelling and accelerating our economic growth.
Right now the world over, you guys as fund managers know that sovereign wealth funds are some of the biggest investors in the world.”
NIEEB chief executive officer Wilson Gwatiringa said: “We have got empowerment projects, but the issue is about how do we create cash from these assets?
“We need liquidity and we need to work with experts to be able to unlock the value.”
Peter Kadzere, one of the fund managers at the meeting, said there was need for the creation of a different class of shares on the Zimbabwe Stock Exchange that would be traded by locals.
“There is a significant role that we can play for employees, community and the sovereign fund,” he said.
“We could have different classes of shares A and B that have different classes.”
Mining companies were some of the companies that have contributed to the NIEEF funds and these include Zimplats, Unki, Mimosa and others.
