SA-based Diaspora Kapita to issue US$10m bond in Zimbabwe

South Africa-based investment holding firm Diaspora Kapita (DK) is set to make waves in the Zimbabwean financial landscape as it prepares to list on the Victoria Falls Stock Exchange (VFEX) and raise up to US$10 million through a diaspora bond issuance. The funds will be directed toward acquiring properties for sale to Zimbabweans living abroad, tapping into the significant market of diaspora investors.

Diaspora Kapita plans to issue Zimbabwe's first diaspora-backed bond, aptly named the Diaspora Remittance Bond, targeting institutional and retail investors. Retail investors, typically individual, non-professional investors, are expected to join institutional players in contributing to the bond. Proceeds will be used to acquire residential properties, including developed stands, shell houses, and completed homes.

Speaking at the Association of Investment Managers of Zimbabwe meeting in Cape Town, Diaspora Kapita CEO Mr. Vhusi Phiri emphasized the bond's unique appeal.

"The bond will target institutional and retail investors, and its repayment will be funded by offshore diaspora communities purchasing properties. This creates a robust foreign currency revenue stream for investors," said Mr. Phiri.

Diaspora Kapita has already engaged property development partners in Zimbabwe to support the bond. The repayment structure, backed by foreign currency inflows, offers local and institutional investors the opportunity to harden their assets. Investors can also contribute existing development properties-such as residential stands or finished housing units-as part of the bond.

The company is collaborating with a local bank to finalize the bond's features, which will be made public soon.

Diaspora Kapita's entry into the VFEX is expected via a reverse listing, taking over from Bridgefort Capital, which recently delisted its preferred shares from the Zimbabwe Stock Exchange (ZSE). This move will mark the first listing of a business generating 100% of its revenue offshore, offering investors exposure to foreign currency revenue streams through a Zimbabwean-listed instrument.

The listing, anticipated within two weeks pending regulatory approval, aims to raise US$5.5 million for expansion initiatives.

Diaspora Kapita is an investment powerhouse founded by 13 Zimbabwean expatriates with interests spanning financial services, insurance, agritech, fintech, and funeral services. The company currently collects approximately US$46 million annually in funeral premiums and leverages South Africa's MTN mobile platform for marketing.

Its funeral services business, with 38 branches nationwide, focuses on the repatriation of bodies from South Africa to Zimbabwe and plans to expand its footprint domestically. The firm's agro-business arm specializes in cattle farming and holds a stake in Montana Meats.

Positioned as a global bridge for Zimbabweans, Diaspora Kapita connects investors to transformative opportunities across borders. With its upcoming VFEX listing and innovative diaspora bond, the firm is poised to unlock significant value for both investors and Zimbabwean communities abroad.

The initiative underscores the potential of diaspora-backed investments to fuel economic growth and create sustainable opportunities in Zimbabwe.