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CHAIRMAN of the Victoria Falls listed real estate entity WestProp Holdings Dr Michael Louis has urged Government to extend the policy position on the usage of the multi-currency regime beyond 2025 to encourage long term investments.
The Government in 2022 gazetted Statutory Instrument (SI) 118A establishing a use of multi currencies up to the year 2025.
His calls come in the wake of a buoyed real estate business whose current growth and stability is deriving from the use of multi currencies. The investments taking place in the sector are because investors feel they can still recoup their investment in the dominant US dollar.
Some naysayers have speculated that the use of multi currencies may be discontinued before the expiry of the policy directive.
Speaking on the sidelines of the premier real estate investment interface Zimreal, Dr Louis said it was in the best interest of the sector if Government were to announce a further extension of the policy directive.
“The big elephant in the room is regarding the currency because at the moment the US$ is legally there up to 2025 meaning we just have two years left.
“So when we do bid developments we can only do it through guarantees of foreign currency inflows.
“So if we do not have a guarantee on the US$ stability, it’s difficult to convince investors to inject capital,” he said.
He also expressed optimism on the government’s commitment to stabilize the local currency and the economy going forward.
“I am very confident that they will do that because they are aware of the importance of currency stability to the future of the country. I don’t believe that they will put the country at risk,” added Louis.
Asked to comment on the stability of the industry after the 23 August plebiscite Dr Louis painted a very positive picture adding that “business remains intact with no indication of any shake up”. — humanitarianpost.co.zw
Online Reporter