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Business Writer
The re-listing on the Zimbabwe Stock Exchange (ZSE) of Tanganda Tea Company signifies positive real development in the productive sectors of the economy, Finance and Economic Development Minister Mthuli Ncube has said.
Tanganda re-listed on ZSE yesterday by way of introduction, marking its return to a platform it left in 2008 following its merger with Kingdom Bank and Meikles Limited.
Speaking at the ceremony, where he was the guest of honour, Minister Ncube said while Tanganda was not necessarily new to ZSE, its listing was testament to the positive economic policies introduced by the Second Republic as it drives towards upper-middle-income status by the year 2030.
He said the successful implementation of the National Development Strategy 1 (NDS1) was premised on a number of factors including higher productivity in the agriculture sector of which Tanganda was part.
“The Second Republic is clear that a private-sector economic growth is ideal and such our policies will continue to strive towards that.
“In terms of NDS1, the agriculture sector is fundamental to the projected economic growth, improving security, land tenure, and supporting smart agriculture strategies.
“NDS1 is facilitating access to affordable agriculture financing through various strategies, and this includes the establishment of the land bank, sponsoring of the use of public, private partnerships as well as reviewing contract farming and agriculture marketing frameworks to cover all stocks and livestock,” Minister Ncube
Tanganda opened the first day of trading at $75 and closed at $67,06 with 1,011,600 shares worth $67,838,020 changing hands.
The company’s listing is testimony that there are practical and tangible benefits of listing on a stock exchange, according to Zimbabwe Stock Exchange board chairperson Caroline Sandura.
Mrs Sandura’s comments dovetail with Tanganda’s reasons for listing including making it attractive to investors and being able to pursue business ventures within the value-added diversified agricultural sector in the country.
Tanganda also believes listing on the ZSE will enable it, in the future, to raise funding with conditions suitable for the type of business it is in.
Speaking at the listing ceremony Mrs Sandura said listing gives companies an enhanced corporate status and a more liquid market for shareholders.
In the last six years, the company invested US$30 million in improvements of infrastructure targeted for new business developments such as coffee, macadamia, and avocado, according to chief executive officer Timothy Fennel.
“Our main objectives are to grow the tea packing business, that is the retail side of our tea and we believe that is where we want to be and more than in the bulk tea sales. We need to value add to our macadamia business where we literally take the nuts to the end-user and not sell to interim people.
“We will continue with developing and expanding our macadamia, avocado, and coffee projects and we wish to turn our livestock division into a company in its own right,” Fennel told invited guests at the launch ceremony.
Online Reporter