Timing drives big interest in Imara's Zimbabwe investor conference

Imara's upcoming Zimbabwe Investor Conference is predicted to be the biggest yet as timing factors drive global interest in corporate developments and potential equity market upside.

The Harare event on May 23-24 is expected to draw in excess of 100 investors and fund managers representing many different equity funds, said Tino Kambasha, head of sales and trading at Imara Zimbabwe, co-conference organisers with SA based Imara Africa Securities.

"Timing helps drive worldwide interest," said Kambasha. "Our corporate reporting season will be drawing to a close. A lot of earnings numbers will be hot off the press, giving delegates an up-to-the-minute insight into specific opportunities.

"Furthermore, many local companies are planning to re-engineer their businesses for success in our dollarised economy. It is more than three years since the multi-currency dispensation came in, more than enough time for companies to determine what it takes to succeed in the new environment.

"We therefore see strong focus on recapitalisation and restructuring by some of Zimbabwe's leading companies – creating direct investment opportunities for some astute international players."

Kambasha said the first wave of Harare restructurings was already under way and had confirmed the potential for foreign investor involvement in new rights issues, direct share placements and the negotiation of international credit lines.

"Further restructurings are imminent," he noted.

"In addition, many equity fund managers are eager to explore opportunities for strong capital growth and high equity yields. Zimbabwe's market capitalisation to GDP is less than 39%, but tops 50% in the wider region.

"This suggests our valuations are relatively cheap with scope for strong gains. At the same time, double-digit dividend yields can be achieved in some instances – an attractive prospect for fund managers from embattled economies."

Imara convened Zimbabwe's first in-country investor conference in 2009 and has organised investment indabas in Harare every year since.

The conferences are designed to act as catalysts for equity and direct investment by introducing delegates to senior executives from the country's top companies. Corporate developments and then discussed in depth.

Presentations are scheduled at the 2012 indaba by a host of blue-chip companies, including Barclays, Delta, New Dawn, Padenga, CBZ Holdings, Zimplats, Dairibord Zimbabwe, Aico/Seedco, Mashonaland Holdings, Masawara Plc, TA, Econet Wireless Zimbabwe and Pearl Properties/M&R.

A strong contingent of Asian investors is expected to complement strong representation from major financial centres in North America, Europe and the Middle East.

Growing Asian interest in Zimbabwe was recently spotlighted by visits by business delegations from India. Imara has therefore invited the Indian Ambassador to Zimbabwe, Shri Jeitendra Kumar Tripathi to open the conference and provide an external perspective on the Zimbabwe opportunity.

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