Published: 10 June 2013

South African institutions are fast re-rating the Zimbabwe equity market, judging by their positive response to the upcoming Imara investor conference in Harare.

Conference organisers expect the biggest South African contingent yet, including asset management firms known to represent major pension funds.

Tino Kambasha, Executive Director at Imara Zimbabwe, co-conference organisers with South Africa-based Imara Africa Securities, says approximately 20 South Africa-based asset managers, institutional investors and analysts are expected to attend the event on June 3-4 – double the number of South African visitors at the 2012 investment indaba.

"Re-rating of the Zimbabwe market is underway," says Kambasha.

"This is happening worldwide, but is especially evident across the South African investment community. New perceptions of risk and reward are taking hold.

"Higher returns are being actively sought, both in terms of dividend income and capital appreciation. Year-on-year growth in Zimbabwe share values can be quite impressive. This has clearly focused the attention of some sizeable South African institutions."

In the 12 months since the last conference staged by the pan-African Imara financial services group, some share prices have doubled or come close to it. The market capitalisation of Delta, Zimbabwe's biggest brewer, is up from US$836 million to US$1.7 billion. Over the same period, the market capitalisation of the Econet telecoms group has moved from US$677 million to US$1.1 billion.

Interest is not confined to South African asset managers. North American investors are expected to form the second largest international group at the event. Asian and Japanese participation is also assured.

Kambasha reports growing interest in Zimbabwe from Japan. It is evident that Japanese investors have already taken positions in Zimbabwean equities and are becoming active traders.

In total, up to 130 delegates are expected to attend – a record. Last year, the conference, the fifth organised by Imara, attracted 100 delegates. Approximately 60 foreign institutions are expected to be represented – up from 50 a year ago.
- Byo24News

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