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Harare - The Reserve Bank of Zimbabwe (RBZ) is set to introduce a Zimbabwe Portfolio Investment Fund to facilitate repatriation of sale proceeds and dividends for foreign investors on the Zimbabwe Stock Exchange (ZSE).
Presenting the 2017 Mid-Term Monetary Policy Statement, RBZ governor John Mangudya said the fund will take effect on September 1 2017 and will prioritise sale proceeds for the initial investment, dividends and then capital gains in that order.
"To kickstart the fund, the RBZ is going provide seed capital amounting to $5m," said Mangudya.
The move comes at a time when most Zimbabwean companies are struggling to repatriate dividends to foreign shareholders, with cigarette manufacturer BAT Zimbabwe also reportedly owing its major shareholders millions of US dollars.
Foreign participation on the ZSE has been very low in the last couple of year due to delays in paying sales proceeds and dividends to foreign investors. As a result, foreign investors’ influence and activity on the bourse have been waning.
The RBZ is also set to introduce a savings bond for individuals, churches, schools, etc at an interest rate of 7%. The minimum investment will be $100. This is meant to encourage a savings culture.
The RBZ also reiterated that the multicurrency is here to stay until economic conditions are conducive to change.
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