Zanu-PF to unlock value in assets

assets that will be unlocked from the Indigenisation programme.
“That value will be used in three distinct but mutually complementary ways, whose developmental impact would be to rehabilitate the agro-infrastructure, physical infrastructure that drives economic enablers and social infrastructure which generates education and health in order to meet the goals of the people by generating incomes, creating employment, contributing to export earnings and boosting the growth of the country’s GDP.”

At least $7,3 billion worth of assets is projected from the indigenisation of 1 138 foreign companies in 12 key sectors of the economy.
The growth of the assets is hinged upon three institutions; Agribank to stimulate agricultural productivity and safeguard food security; IDBZ to rehabilitate physical and social infrastructure to revive the country’s key economic enablers; and Sedco to finance innovative youth and women’s projects to promote financial inclusion on the formal sector.

IDBZ will be capitalised to the tune of $5 billion and from there $3 billion will be dedicated towards physical infrastructure. This refers to investments in roads, railways, airports, power and the ICT sector. The remaining $2 billion will be used to cover investments in education, health, housing, welfare, security and safety services, water and sanitation.
Indigenisation assets will be unlocked to capacitate Agribank with a $2 billion endowment to enable it to mobilise resources amounting to $8 billion for the agriculture sector.

Adequate financing of agriculture will benefit millions of people through higher incomes, food security and the generation of employment.
A Zanu-PF Government will revamp and capacitate the Small Enterprises Development Corporation (Sedco) to inject new capital from indigenised assets to promote financial inclusion in the informal sector by financing innovative projects that are run by youths and women.

Meanwhile, the party will also forge ahead with plans to open the Harare Stock Exchange which had been deferred following the numerous reports against indigenisation (what the Daily News referred to as Nieebgate).

HSE will launch this year and shares will be distributed to at least 500 000 beneficiaries of the indigenisation programme. The beneficiaries will be doubled in 2014 while the figure will taper off in 2015-2018 to 200 000, 100 000, 100 000, 100 000.

Zanu-PF says the move will deepen Zimbabwe’s capital markets and will target an initial market capitalisation of $1 billion and expects this to grow by at least 10 billion annualised from 2015 onwards.

The party says the value of collateral in the hands of Zimbabweans which can be used to access finance for development projects is at least US$500 million for the first year, which would rise to about U$1 billion next year and thereafter grow by at least 10 billion annually.

“The HSE will have a pivotal role to play in the redistribution of Zimbabwe’s natural and economic wealth to previously disadvantaged indigenous Zimbabweans in terms of the Indigenisation and Economic Empowerment Act. Most notably, HSE will complement President Mugabe’s vision of economically empowering every indigenous Zimbabwean in a practical and tangible way,” says the manifesto.

The HSE is being pushed by the National Indigenisation and Economic Empowerment Board, private equity firm Brainworks Capital and Singular Systems of South Africa.
According to the Securities Act, an application for the registration of a securities exchange shall be made to the commission accompanied by a certified copy of company registration papers, the constitution of the applicant, details of the authorised and paid-up share capital and the structure of the organisation.

If licensed, the exchange’s engine will be to facilitate indigenisation share schemes in Zimbabwe. The shares will be traded under an indigenisation index (IndigeNEX). IndigeNEX will allow indigenous Zimbabweans to participate in a restricted environment to buy and sell shares in the Zimbabwean economy.

Trading on the exchange will be automated and will have an electronic share register and both the buyer’s and the seller’s portfolio statements are updated instantaneously and the platform also sends an SMS to both buyer and seller to confirm the transaction. The seller then can choose to buy shares again or to transfer the proceeds to his/her commercial bank for withdrawals. HSE settles trades immediately. The Zimbabwe Stock Exchange operates on a T+7 payment cycle. The T+ 7 cycle is a term which denotes that share transactions should be settled within seven days.

According to the operating documents, companies may choose to list on either the general market or the IndigeNEX market. The IndigeNEX market is designed for counters that will require 100 percent ownership of shares to be held by Indigenous Zimbabweans. On the IndigeNEX market, the HSE platform verifies the identity number of users before accepting any orders to trade. Only users with Zimbabwean identity numbers not ending with 00 will be allowed to trade on the IndigeNEX market. Companies who wish to list on IndigeNEX will have to comply with the HSE listing rules.

Applicant companies and listed companies have to appoint a nominated advisor to assist them with the completion and submission of the application form and supporting documents as set out in the HSE listing rules and the reporting and compliance rules as set out in the HSE compliance and reporting rules. — Financial Express.