Government is in the process of formulating a Diaspora Bond to attract investment from many Zimbabwean nationals living abroad with the intention of listing it on the Victoria Falls Stock Exchange, the Minister of Finance and Economic Development Professor Mthuli Ncube has said.
A diaspora bond is a government debt security with investors drawn from the country’s nationals living abroad, their descendants, or those with another connection to the nation.
Speaking to journalists via Zoom from United Arab Emirates where he is currently attending the Dubai Expo, the minister said background work has already commenced although he was not specific on when the bond will be issued.
“We intend to launch a bond soon to be listed on VFEX. We will evaluate that and make sure we make a good instrument which they will participate in,” said Prof. Ncube.
The government is keen on promoting investments through the country’s capital markets especially when FDI inflows have been dampened by the COVID-19 pandemic and other political factors.
Last year IT announced plans to also set UP a US-dollar bond and list it on the VFEX to build a yield curve for both domestic and foreign debts.
Many Zimbabweans living abroad are skeptical of investing home citing corruption and inconsistencies in policy.
However, there is evidence of their support back home in terms of remittances to families and friends.
Diaspora remittances to Zimbabwe jumped 58 percent in 2020, reaching about US$ 1 billion the highest ever contribution made to the local economy.
“We have been talking to the Zimbabwean business community here in Dubai and they have expressed keen interest in agriculture. They want land and to be active in health sector.”
Meanwhile, the minister said the visit to the UAE is also meant to attract non-Zimbabwean investors and cement economic ties between the two countries which have seen trade reach US$ 1.5 billion in 2021.
He said they had identifies 15 investor who want to invest in the gold sector.
