Wazua
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Introduction to Zimbabwe and the Zimbabwe Stock Exchange.
Rank: New-farer Joined: 9/29/2011 Posts: 22 Location: Nairobi
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I am a regular in Zim but would consider three factors, 50% foreign ownership rule (what direction it will take) since most of the companies have mojority forign ownership, Erections and when they take place and unit price of the stock you note majority are split candidates otherwise prices are not for small investors. But under any economic conditions people will always swallow to down their sorrows, hence delta any time and any mining concern.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Dmitrys wrote:I am a regular in Zim but would consider three factors, 50% foreign ownership rule (what direction it will take) since most of the companies have mojority forign ownership, Erections and when they take place and unit price of the stock you note majority are split candidates otherwise prices are not for small investors. But under any economic conditions people will always swallow to down their sorrows, hence delta any time and any mining concern.
Super. How would you describe the status of a regular Zimbo pre & post 2009. Better or worse?
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Rank: New-farer Joined: 9/29/2011 Posts: 22 Location: Nairobi
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Things have improved you get regular supplies but at a price the only functioning currencies are USD (acceptable everywhere), SA Rand in (Bulawayo area and border) and and Botswana (Pula scarce). You can imagine in a rural economy where everything from a match being quoted in dollar term and smallest unit is 1 US.
It paints three pictures but with a lot of uncertainity at the moment until election time and outcome, 1)stability and move to next level of reconstruction, 2)dependant on erections continue fighting and keep away foreign capital and fights spelling doom and 3)Another coalition and continue waiting and uncertain future.
It is upon one to gamble but like Somalia there are many opportunities, including basic supplies, there are no functioning factory and import everything from the basic, blanket, powder milk, soap. The few factories that work are barely surviving as it is very expensive to operate, e.g. import parts and raw materials. Everything mafuta, sabuni, body oil, costs 1.5 value of nairobi price. Beware no economical and reliable transport link with nairobi only aircargo (KQ, EA, SAA) which cost leg and a nose, need a local partner to circumvert 51% rule and most shops do not buy bulk wholesale no capital hence you might need a godown
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Rank: New-farer Joined: 9/9/2011 Posts: 11
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Cde Monomotapa wrote:Personally, I am a 100% behind I&E in mines. See, what the foreign press won't tell u is that it costs btwn USD15M - 1B to set up a mine that is sitting on several more hundreds of millions & billions worth of ZIMBABWEAN NATURAL WEALTH. Thus, as the rest of Africa keeps getting screwed off their natural wealth, I will be happily invested in a country where 51% of mining earnings are retained in the country. MEGA DOMESTIC consumer & capital base.
I couldn't agree more..African countries need to impose a 50% mining tax on this foreign fleeces,it only makes sense,since 50% of revenues generated would usually be more than sufficient to repay the capital costs incurred in setting up the mine,that 50% due to the fleecers should incur further Corporate tax and dividend witholding tax on repartriation,that is the only way we can ensure our assets are deployed in developing our country.
Another option would be to introduce an auction system upfront with a floor price set at 50% of the present value of projected revenues,this will ensure even local consortiums have a chance of bidding for the projects as opposed to the current tender process where gava hawks are bribed to award tenders to companies.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Dmitrys wrote:Things have improved you get regular supplies but at a price the only functioning currencies are USD (acceptable everywhere), SA Rand in (Bulawayo area and border) and and Botswana (Pula scarce). You can imagine in a rural economy where everything from a match being quoted in dollar term and smallest unit is 1 US.
It paints three pictures but with a lot of uncertainity at the moment until election time and outcome, 1)stability and move to next level of reconstruction, 2)dependant on erections continue fighting and keep away foreign capital and fights spelling doom and 3)Another coalition and continue waiting and uncertain future.
It is upon one to gamble but like Somalia there are many opportunities, including basic supplies, there are no functioning factory and import everything from the basic, blanket, powder milk, soap. The few factories that work are barely surviving as it is very expensive to operate, e.g. import parts and raw materials. Everything mafuta, sabuni, body oil, costs 1.5 value of nairobi price. Beware no economical and reliable transport link with nairobi only aircargo (KQ, EA, SAA) which cost leg and a nose, need a local partner to circumvert 51% rule and most shops do not buy bulk wholesale no capital hence you might need a godown
All money money $$ depending on where U are sitting 
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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I've been a shareholder of Meikles Group since 07' (days I could not interpret all those ZWD zeros ) BUT now in the latest numbers out of TM Supermarkets only, turnover spiked to USD160M and that to me tells me consumer spending is on the up n up! Hence the economy is breathing life! Our other competitor OK Zim is doing awesomely too
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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On the politics vis-a-vis the economy I get a big laugh out of peoples fixation and negativity against Cde. Mugabe and yet he is the very president who has sat through all Tuesday cabinet meetings of both Zanu & MDC post 2009 and participated in and approved all economic recovery policies that we are enjoying now 
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Sielewi, kwani the gava has to force the companies to sell their shares to black Zims? Kwani ukienda kununua, the whites wanakataa kukuuzia? I can understand if its the gava ensuring black ownership of companies, but now black ownership of stocks? Ama nimesoma vibaya? Huyu Mugabe kweli! So as a black non Zimbabwean, do I fall under the 51% or can I only buy the shares available to mzungu? When is their next election? Was the last one free and fair, this sounds naive of me, but pliz eleweni that the news in the States is very one sided. Do the locals like Mugabe or are they under a dictatorship? And what does expropriation mean? Hii kizungu ya Brito sielewi. And Msaliti, what do you mean by is this an arms race? Hii Zimbabwe seems more complicated than meets the eye, when the gava can impose rules on private companies, what would prevent them from grabbing my shares and saying that the local mwananchi needs them??? Comrade pliz expound.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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"It's a Jersey thing. You wouldn't understand" - South Park Most ZSE companies are compliant.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Wacha mzaha, you know im your go to expert when it comes to the NYSE, so its time you returned the favor. By the way just curious, in 2017 when you finally invest, which stocks will you buy? This should be interesting
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Introduction to Zimbabwe and the Zimbabwe Stock Exchange.
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