NIEEB meets fund managers

Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, who addressed the fund managers, said that tenders for fund management, audit and legal services would soon be floated for community share ownership trusts. He said that this was part of the ministry’s objective towards corporate governance.

There are six community share ownership trusts in the country and more are expected to be launched soon in the remaining provinces. The value of the trusts in the form of shares in mining companies that have complied with the country’s empowerment regulations is now around US$1 billion and is expected to grow as more companies in other sectors move in.

More than US$110 million has either been pledged or paid out to community share trusts by mining companies as seed capital for community projects in Mhondoro/Ngezi, Shurugwi and Zvishavane.
Minister Kasukuwere said empowerment was not about cheap politics but the genuine need to empower locals.

“Look at it this way; if a few companies being compliant have resulted in the localisation of almost 20 percent of GDP, how much of our GDP is actually in foreign hands? Therefore, if our economy produces a certain amount of GDP but we then export all of it because we have chosen not to lay a stake in our economy, we are all clearly missing something.”

“So why not become our own masters instead of chasing small savings accumulated by investors and pension funds over the years? I think our fund managers should be given opportunities to manage each a slice of the NIEEF funds. The community share trusts will also need independent advisors.

“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 US$2 billion NIEEF among the 16 registered fund managers in Zimbabwe each of you would be potentially looking at an asset book of not less than US$100 million.”

He encouraged fund managers to approach him and the board to discuss how best to go about this process. “Our doors are always open come and share with us on how best we can go about this process,” he said, adding that no one should cry foul when they see others making money because they had been given the platform to do so.

NIEEB chief executive Mr Wilson Gwatiringa said NIEEF was holding huge funds and as such the board was willing to work as a team with fund managers to create a profitable fund.

Speaking on behalf of fund managers, Kingdom Asset Management chief executive Mr Peter Kadzere urged the investment community to embrace the opportunities and work with NIEEB.