The Sunday Mail
PAN-AFRICAN investment holding group Diaspora Kapita is angling to debut on the Victoria Falls Stock Exchange (VFEX) early next year to widen its net to attract investors.
This comes as several companies are eyeing the United States dollar-denominated exchange, which is seen as a secure vehicle for raising capital.
Now, Diaspora Kapita — an investment holding group focusing on identifying, acquiring and building a portfolio of sustainable growth assets in Sub-Saharan Africa — is targeting the first quarter of 2024 for its listing. This follows approvals from shareholders to carve out its financial services assets and convert them into a public company.
“Our objective from the outset has been to make Diaspora Kapita accessible to everyone. As we approach our 10th anniversary next year, we believe it’s the right time to go public. We aspire to play a strategic role in the economic growth of Zimbabwe”, said Diaspora Kapita chairperson Mr Lovemore Makunike.
“Over the years, many of our communities have remained mere spectators, watching other investors from lands afar take a deep dive into our local economy, and we are coming down from the terraces to engage with the Government and other private partners to claim our economic heritage in the land that holds our umbilical cord,” he said.
Formed in 2014, Diaspora Kapita is an investment company engaged in contract mining, financial services, fintech and agriculture.
With over 200 employees in South Africa and Zimbabwe, the company’s notable investments include 21st Century Life, AgroStrong (offers cattle-backed financial services), Northlands Resources (involved in contract mining in Zimbabwe) and Tsigiro Usekelo (offers global financial services).
The company also sees potential in the property sector, particularly in providing diaspora mortgages, and recognises significant opportunities in the health sector.
“Collaborations are important, as we envision a listed vehicle that fosters a sense of ownership among the diaspora and local individuals,” said chief executive officer Mr Vhusi Phiri.
The company seeks to tap into the diaspora mortgage opportunity, estimating a market of more than US$4 billion and targeting at least 100 000 households to access the property market. Collaboration with Government on policy formulation and incentives for Zimbabweans to invest back home would give impetus to this dream, according to Diaspora Kapita.
Mr Phiri called on the diaspora community to work within the confines of the environment, advocating participation in the developmental process.
“A balanced approach — acknowledging the benefits of foreign direct investment, while advocating a sustainable balance that doesn’t compromise local ownership — is key.
“Many in my generation have been outside Zimbabwe for over 15 years, and now have an appetite for active involvement in shaping the nation’s future,” concluded Mr Phiri.
Diaspora Kapita regards itself as a remarkable exemplar of how collaboration between locals and the diaspora can be effectively harnessed.
It says its primary aim is to generate value for both groups, while fostering Africa’s development by creating employment opportunities and actively contributing to the resolution of the continent’s challenges.
“Notably, the African diaspora remits an impressive sum of over US$48 billion to their countries of origin and annually saves about US$53 billion in their host nations. Unlocking the potential of this remittance flow presents a transformative opportunity for Africa as a whole,” the group says.
The group says members of the Zimbabwean diaspora contribute significantly, remitting more than US$1,5 billion each year, and their cumulative remittances to Zimbabwe have surpassed US$20 billion over the past 15 years.
Further, the group plays a pivotal role in establishing a robust platform that enables Zimbabweans in the diaspora and those residing in the country to collaborate on co-investments and project execution, all geared towards the betterment and prosperity of Zimbabweans at large.