Sikhulekelani Moyo, Business Reporter
FINANCE and Economic Development Minister, Professor Mthuli Ncube, says modalities are being finalised to facilitate establishment of a diaspora bond, which will allow Zimbabweans abroad to contribute more to national development.
With thousands of Zimbabweans living outside the country, prospects are high that the proposed diaspora bond facility could incentivise access to critical funding for infrastructure projects and incentivise enhanced support for families back home.
The Migration Policy Institute defines a diaspora bond as a Government debt security with investors drawn from the country’s nationals living abroad, their descendants, or those with other connections to the nation.
Speaking with potential investors and Zimbabweans in the diaspora during a business meeting organised by President Mnangagwa on the sidelines of the United Nations General Assembly 77th session in New York last week, Prof Ncube said diaspora bonds were a lucrative avenue for harnessing investment back home.
“We want investment back home. How shall we do it? The first thing is that you can invest through a diaspora bond, which we are going to issue in the next few months,” he said.
“We took a while putting it together and it’s now ready. You can invest through that bond. It’s very good and very attractive,” said Prof Ncube.
“We are also going to set up a structure where rather than sending money every month to your relatives, we can take the interest and pass it on to your parents. You invest once, after that you can look after your parents through interest. Investment is very safe in Zimbabwe.”
Earlier this year, during a Zimbabwe Diaspora Forum in Dubai, Prof Ncube said US$200 million bond will be launched and will be listed on the Victoria Falls Stock Exchange (VFEX) to open wider opportunities for locals and the diaspora community.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), launched late last year as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets while also helping companies to raise capital in foreign currency.
Prof Ncube said the diaspora community, which has increased its contribution to the economy to US$1,4 billion in 2021, stands a huge chance to derive higher dividends from the bond market. — @SikhulekelaniM1