Zimbabwe investors use their Old Mutual to repatriate funds outside country

OLD Mutual Group CEO for Harare Mr Jonas Mushosho addresses the audience at an official handover of the technology centre at Mzilikazi memorial library in Bulawayo yesterday. Following proceedings are, from left, Old Mutual regional manager Mrs Margaret Vera, Old Mutual deputy group CEO Mr Zomunoda Chizura and the Town Clerk Mr Middleton Nyoni.

Harare- According to various online finance reports, investors are using Old Mutual as a way to reestablish their investments outside the country.

 

This comes after Old Mutual traded at $4.02 at the close of trade on Monday on the Zimbabwe Stock Exchange (ZSE), this was compared to a JSE price of R34.64 or $2.63 at 15:50.

 

According to a local analyst Walter Mandeya, “What has been happening is that foreign investors have been buying Old Mutual shares on the ZSE and have them removed from the ZSE share register to either the London Stock Exchange (LSE) or the JSE.”

 

According to analysts, the fund might fail to make a positive difference unless the Reserve Bank of Zimbabwe (RBZ) takes steps towards  funding the current backlog that is facing their country.

 

Mandaye also went on to say, “There is a backlog of more than $75m and the $5m seed money from the RBZ is not enough. If one is to sell now, the sale proceeds will be used to pay for those who are already in the queue so there is no benefit for the new seller”.

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