The Company’s investment objective is to provide Shareholders with long term capital appreciation
through the investment of its capital in Zimbabwe, and as the Board deems fit, countries surrounding
Zimbabwe, as well as the remainder of Sub-Saharan Africa, with a bias towards Southern and Eastern
Africa.
While the Company will not have a particular sectoral focus, utilising the investment skills of the Directors and their advisors, the Company will seek to identify individual companies in sectors best positioned to benefit from the economic growth outlook for Sub-Saharan Africa.
The Company will use existing investments as a platform to enter into new opportunities, through either mergers or acquisitions, or may make outright acquisition of new investments in business within Sub-Saharan Africa but having a significant exposure to assets, businesses or operations within Zimbabwe, countries surrounding Zimbabwe, as well as Southern and Eastern Africa.
While there will not be any limit on the number or size of investments the Company can make in any sector, the Directors will seek to diversify the Company’s investments across sectors in order to mitigate risk and to avoid concentrating the portfolio in any single sector.
The Company’s interest in a proposed investment or acquisition may range from a minority position to full ownership. The Company intends, in any event, to actively manage the operations of the companies it has invested in. Wherever possible the Company will seek to achieve board control and/or financial control of its portfolio companies, within the limits allowed by the regulatory and/or legal framework.
The Directors believe that through their individual and collective experience of investing and managing acquisitions and disposals in Africa, they have the necessary skills to manage the Company. Prior to any investment decisions being taken by the Board of the Company, a thorough due diligence process will be undertaken by the Company’s appointed independent specialist financial and legal advisers.
The Directors may, as a means to maximize value of the investment portfolio, decide to, among others, entirely or partially wind-down, liquidate, divest, merge and/or list investments at times it deems appropriate.
As an investment company with a focus on Sub-Saharan Africa, there are a number of risks inherent to the area of investment which the Company is exposed to, which include but are not limited to currency risk, emerging market risk, economic risk, capital markets risk, political risk and risks relating to acquisitions, mergers and divestitures. Therefore the Company’s investment strategy is dependent upon effective risk management and having an appropriate risk governance framework and it is therefore possible that a significant period of time may elapse before an investment by the Company will produce any returns.
The implementation of the Company’s strategy for future growth will depend upon a number of factors, many of which may not be under the control of the Company and accordingly, the Company may not be able to make any profits and may incur losses.
The Directors intend to seek the consent of the Shareholders for the investment policy on an annual basis. The Company and its Directors will comply as a matter of policy with the OFAC and Regulation (EC) No. 314/2004 regulations.