Browsing: Zimbabwe stock exchange

Fast food giant, Simbisa Brands Ltd., the firm that controls high-profile restaurant chains across African markets, spurred its planned VFEX listing, notifying investors in a comprehensive roadmap that the deal may be through by December 2, 2022.

Simbisa, which has risen from its Zimbabwean roots to establish a formidable African network, executes its strategy through a string of high-end hospitality brands that include the flagship Chicken Inn, Pizza Inn, Creamy Inn and Bakers Inn, one of the country’s biggest bread producers.

It also holds the franchises for quick service restaurant chain; Rocomamas, Nandos and Steers, along with Galito

In a statement that disclosed Simbisa’s rationale to switch from the ZSE, the firm’s board rallied shareholders to give an emphatic nod to the transaction at an extraordinary general meeting scheduled for November 18, 2022.

By listing, the REIT aims to attract focused and permanent capital for the promoter to develop further assets, support the Insurance and Pensions Commission and Ministry of Finance and Economic Development in their efforts to provide liquidity and deepen the savings pool through REIT products and also to provide retail and institutional investors quality and liquid commercial real estate investment vehicle.

Based on the published prospectors, the company said the economic growth of a nation is driven by a vibrant commercial infrastructure both industrial and retail properties to support production and trade.

The development of quality commercial property is more than imperative in the Southern African country as the economy is set for a path of recovery that is expected to revitalize significant economic activity.

“The participation of local beneficiaries in the development and ownership of such property fosters an inclusive capital growth and sources of passive income for average Zimbabweans. This presents a strong case for a well-structured REIT that allows participation of investors with minimum capital requirement, offering value preservation and stable return on capital through income distributions and capital gains.

Post the Restructure, in January 2018, Probrands disposed of its dairy assets to a newly incorporated company, Prodairy, a dairy and dairy products processor.”

The company has a long history of brushes with the law.

In 2013 Innscor Africa Limited was fined US$ 60 million for not following the proper procedures in its acquisition of majority shareholding in National Foods Limited in 2013. The CTC, after conduction investigations on the transaction, found that Innscor acted against regulations when it purchased a majority interest in National Foods.

Innscor Africa Limited as in its most recent run-in with CTC did not notify them of their intention to acquire a majority stake in National Foods Limited which is a contravention of the Competition Act.

According to an article by Forbes dated June 23, 2022, the world’s first stock index appeared in July 1884 when the ‘Dow Jones Transportation Index’ was published in the US by newspaperman Charles Dow. The index comprised 11 transport stocks including nine railway companies, a steamship company and a telegraph operator.

The index average was calculated by adding all its share prices together and dividing the total by 11 – the number of shares.

There’s a more in-depth look at the indices on the ZSE, along with the profiles for the fourth quarter of 2022 put together.

ZSE said that indices provide the market with better performance apparatus and assist in choosing sector-based investing strategies.

This will make it the fifth stock to list on the USD exchange joining SeedCo International, Padenga Holdings, Caledonia Mining Corp and Bindura Nickel Company and might provide the necessary momentum the exchange desperately needs.

The VFEX is a subsidiary of ZSE that was established some two years ago to exclusively trade in foreign currency and position itself as a regional offshore capital market to attract global investors.

The group operates a network of 524 owned restaurants under Chicken Inn (140 restaurants), Pizza Inn (129), Creamy Inn (87), Bakers Inn (58), Galito’s Africa (36), Nando’s (14), Steers (9) and other (51) brands such as Rocomama’s (Zimbabwe Only) and Vida E Caffé, located in Zimbabwe, Kenya, Zambia, Ghana, Mauritius and Namibia. Simbisa listed on the ZSE in 2015.

Investing in ETFs or exchange-traded funds is equivalent to investing in all constituents that are part of an index directly.

According to Forbes, the yields or returns generated by ETFs replicate the benchmark index. It gives investors an opportunity to benefit from diversity, flexibility and scope for growth that comes from ETFs being traded on stock exchanges.

An exchange-traded fund (ETF) is a marketable security that tracks an index, sector, commodity, or another asset which can be purchased or sold on a stock exchange the same way a regular stock can.
Zimbabwe became the fifth country in Africa to list an ETF, with South Africa, Nigeria, Kenya, and Egypt also currently trading the instrument.

Zimbabwe became the fifth country in Africa to list an ETF, with South Africa, Nigeria, Kenya, and Egypt also currently trading the instrument.

The ZSE’s 2020 research found that individual Zimbabweans made a meagre amount of contributions to the regional capital market. A few of the obstacles mentioned are a lack of understanding of the investment process and the notion that it is the realm and preservation of the wealthy in society.

According to an article by Mail and Guardian published May 25, 2022, this survey prompted the bourse to launch ZSE Direct, a product that would make access to the market straightforward even for first-time investors.