Published: 22 hours ago

Listed real estate investment trust (REIT) Tigere has expressed concern over Zimbabwe's proposed transition to a mono-currency regime, warning that the move is already unsettling funding channels in the property sector.

The warning comes amid recent signals from central bank officials that the country could switch exclusively to the Zimbabwe Gold (ZiG) currency by 2030. Authorities have said the shift is part of a long-term strategy to build foreign reserves and ensure macroeconomic stability.

In its financial results for the year ended, Tigere highlighted that the policy uncertainty is affecting confidence across the real estate industry.

"Given continued uncertainty surrounding the 2030 migration to mono-currency, the real estate sector remains predominantly equity-financed," the company said.

Equity financing, which involves raising capital through the sale of company shares, has become the dominant source of funding as debt financing is constrained by monetary volatility.

The International Monetary Fund (IMF), in its most recent engagement with Zimbabwean authorities, urged stronger monetary and exchange rate frameworks and encouraged efforts to boost public confidence in the ZiG. IMF staff said these reforms must be paired with measures to increase demand for the currency.

Despite the policy concerns and broader economic headwinds, Tigere posted solid results. The fund's Net Property Income jumped 56.6% year-on-year to US$1,205,846, largely driven by the performance of Highland Park Phase 2, which has seen continued growth in revenue and customer activity.

The trust also reported improved profitability. Its Total Dividend Per Unit (DPU) climbed 44.8% to US0.0951 cents, while Earnings Per Unit (EPU) rose 25.8% to US0.0925 cents. This performance came despite a 48.8% increase in the number of units in issue, as comprehensive income surged 87.2% to US$990,155.

Tigere further noted improvements in rental collection, with collection rates rising to 87.3% in the first half of 2025, compared to 81.2% in the same period last year. The improvement follows the rollout of more stringent rent enforcement measures.

As the sector faces the implications of the proposed currency transition, Tigere says it will continue to focus on income-generating assets and risk mitigation strategies to safeguard investor returns.
- NewZimbabwe