adminBusiness Reporter
DEAT capital is planning an international roadshow in April to help local firms explore capital, trade and investment opportunities.
The roadshow will see Deat mobilising a delegation from the private sector, Government and public enterprises for meetings in Singapore and Hong Kong between April 4 and 9.
Managing director Mr Nicky Moyo said they would take a highpowered delegation comprising chief executives, regulators, senior Government officials and State enterprises.
“The roadshows are meant to promote Zimbabwean firms to explore capitalraising opportunities in new and emerging markets.
“The meetings will profile opportunities in those markets as you know Hong Kong is among the top 10 emerging markets in the world and Zimbabwe could very well benefit,” said Mr Moyo.
He said they would organise to meet stock market officials, asset managers, stockbrokers, State enterprises, sovereign funds and companies in infrastructure, energy and mining.
Mr Moyo said the trips to Singapore and Hong Kong would come in handy for local firms to explore capital, trade and market opportunities.
He pointed out that Hong Kong, in particular, would be crucial in tapping into the Chinese market and investment opportunities considering that most successful firms from Beijing were listed on the Hong Kong Stock Exchange. Efforts by Deat come amid a liquidity crisis in the country, which has made capital elusive, short term and expensive.
Local financial institutions have taken advantage of the prevailing liquidity crisis to charge interest rates as high as 30 percent on largely shortterm loans with a three to six months tenure.
Most firms are struggling to raise capital, improve efficiency and productivity in the aftermath of a decadelong economic downturn.
Lack of capital means they can not retool, fund working capital requirements and produce at low cost and so they remain largely uncompetitive.
Against this background, Deat last week organised a symposium attended by a delegation from London to foster partnerships with local firms to explore capital raising opportunities in the UK.
It emerged during the conference held in Harare that it was possible for local firms to raise funding on London’s capital markets, which offers a diverse range of investors.
The LSE’s Main Market and the Alternative Investment Market are considered the most liquid capital markets turning over £3 billion daily and £4 trillion annually.
A case in point is Masawara Plc, which raised US$25 million on AIM last year to fund acquisition of assets in Zimbabwe.
The firm plans to raise an additional US$75 million in London to take advantage of gross cheap assets in Zimbabwe as the country recovers from the effects of years of sanctionsinduced economic stagnation.
Online Reporter