Canadian firm upbeat over investment opportunities

report for 2012, Zimbabwe has become popular with foreign investors with Nigeria and Kenya topping the list of attractive emerging markets.
According to the Economist Intelligence Survey, Zimbabwe is among Africa’s top investment destinations in 2012 as global institutions plan their asset portfolios in Africa.
By 2016 all the institutional investors are expected to have some exposure to emerging Africa, with nearly one-third expecting to shift at least 5 percent of their fund value there.
“Recently, Zimbabwe has been in the news with investments from Chinese and Indian investors,” added the report.
Investor confidence by foreign investors comes at a time when some foreign companies are unhappy with the country’s empowerment laws which expects foreign-owned companies to sell at least 51 percent stake to locals.
However, the country’s biggest mining companies have complied with the regulations by forming community share ownership schemes.
Foreign investors are keen on Africa’s emerging middle class as the most attractive aspect of the continent, which until now has been a largely natural resources play.
According to the report, Africa’s frontier market will offer the best overall prospects for investment growth in the next decade.
Whetstone has invested over US$25 million on exploration and modernisation of its existing mines in the country.
The firm acquired gold claims in Matabeleland North from Duration Gold and is seeking a secondary listing on the Zimbabwe Stock Exchange.
The firm has always said Zimbabweans should be allowed to invest in new locally focused exploration firms and participate in new discovered projects.
Its dual listing on the Toronto Stock Exchange and ZSE will give locals the right to participate in the development of minerals in their country.
Initially, the firm wanted over 16 percent of its shares to be owned by indigenous Zimbabweans and when the listing is completed, it would raise about US$5 million through an initial public offering.
About US$4,5 million of the US$5 million raised would be invested in Zimbabwe – a net flow of US$2,5 million in foreign direct investment.
However, the firm has been quiet about its listing plans in light of the country’s equity laws.