KEY POINTS
- Diaspora Kapita to list on VFEX via reverse takeover of Bridgefort Capital.
- $10M Diaspora-backed bond targets housing investments for Zimbabweans abroad.
- Repayment secured by foreign currency from diaspora property buyers.
South Africa-based investment holding company Diaspora Kapita (DK) is poised to revolutionize Zimbabwe’s financial markets with plans to raise $10 million through the issuance of its Diaspora Remittance Bond.
The bond, which will be listed on the Victoria Falls Stock Exchange (VFEX), is aimed at tapping into the growing diaspora market to fund residential property acquisitions in Zimbabwe.
A first for Zimbabwe’s diaspora market
The Diaspora Remittance Bond is positioned as Zimbabwe’s first diaspora-backed bond, targeting both institutional and retail investors. The proceeds will be channeled toward acquiring residential properties, including developed stands, shell houses, and completed homes, for Zimbabweans living abroad.
At a recent Association of Investment Managers of Zimbabwe meeting held in Cape Town, Diaspora Kapita CEO Vhusi Phiri highlighted the bond’s distinctiveness, explaining that its repayment will be driven by foreign currency inflows from diaspora communities purchasing these properties.
“The bond provides a robust foreign currency revenue stream for investors while offering diaspora buyers access to quality housing options in Zimbabwe,” Phiri stated.
Strategic partnerships and innovative offerings
Diaspora Kapita has partnered with Zimbabwean property developers to streamline project delivery and ensure the success of the bond.
The company’s repayment structure is designed to attract local and institutional investors by offering returns secured by foreign currency inflows. Additionally, investors can contribute existing development properties, such as stands or completed housing units, to the bond.
A local Zimbabwean bank is collaborating with Diaspora Kapita to finalize the bond’s features, which will be disclosed ahead of its launch.
A landmark VFEX listing
Diaspora Kapita’s bond issuance aligns with its plans to list on VFEX through a reverse takeover of Bridgefort Capital. This will mark the first time a business with 100% offshore revenue generation is listed on a Zimbabwean stock exchange. The listing, pending regulatory approval, is expected within the next two weeks. The offering aims to raise an additional $5.5 million to fuel the company’s growth initiatives.
A global vision rooted in Zimbabwe
Founded by 13 Zimbabwean expatriates, Diaspora Kapita is a diversified investment firm with interests in financial services, agritech, insurance, fintech, and funeral services.
The company generates $46 million annually in funeral premiums, leveraging South Africa’s MTN mobile platform for marketing. Its funeral services business, which includes 38 branches across Zimbabwe, focuses on repatriation of bodies from South Africa while expanding its domestic operations.
Diaspora Kapita’s agro-business unit specializes in cattle farming and holds a stake in Montana Meats, further diversifying its portfolio.
By offering Zimbabwean expatriates a stake in transformative projects at home, Diaspora Kapita aims to unlock significant value while bolstering Zimbabwe’s economy through diaspora-backed investments. Its upcoming VFEX listing and innovative bond issuance underscore the growing potential of leveraging global networks for local development.
