Lonrho pins hopes on Zimbabwe revival; In association with BUSINESS...VENTURE Plan for pounds 100m investment.Byline: BY BARRY TURNBULL Daily Post Business Features Editor
pertaining to or originating in Africa.
includes black Cape buffalo, red Congo buffalo and red-brown varieties from Abyssinia to Niger. See also buffalo. investment specialist Lonrho says it is looking to raise pounds 100m to inject into Zimbabwe's stricken economy.
The company, which has its registered office in Liverpool, has received huge interest from potential investors who can see opportunities under a post-Mugabe regime.
AIM-listed Lonrho has raised pounds 24m via a placing to enhance its current African operations which include water bottling, air cargo air cargo: see aviation. and a hotel. The company has also announced a 65% stake in Mozambique's biggest commercial IT distributor.
Chief executive David Lenigas said: "This is another example of Lonrho's strategy of investing in Africa's infrastructure. It's an essential tool for helping them to grow and prosper while keeping up with the rest of the world."
But its Zimbabwean venture is a big gamble. Because of the high risks, it is setting up LonZim as a separate business in which it will probably take a stake of only about 20% plus a management contract.
Mr Lenigas added: "Do I want to give Lonrho shareholders 100 cents to the dollar risky exposure to Zimbabwe? No. Because you don't know how long the money's going to be locked up," he warned.
Under the catastrophic rule of Robert Mugabe Mugabe redirects here.
For other uses, see Mugabe (disambiguation).
Robert Gabriel Mugabe KCB (born on February 21, 1924) is the President of Zimbabwe. He has been the head of government in Zimbabwe since 1980, first as Prime Minister , inflation has soared to 3,700% and four in five Zimbabweans live on less than EUR EUR
In currencies, this is the abbreviation for the Euro.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1 a day.
Despite the scale of the crisis, foreign investors are queuing up to take a position ahead of any post-Mugabe regime. Mr Lenigas believes he could raise much more than pounds 100m but would struggle to deploy the funds.
"Brokers Stewart Collins have never seen such a response to a concept. The phones are running hot," he said.
Initially, investment will mainly be in property.
"Commercial property is cheap as chips, the infrastructure in Harare is fantastic but it's fire-sale prices," he added.
"We also see a big market in residential property and resorts and game parks too. As the economy in Zimbabwe grows, and it will do, the tourists will come back. Tourism is going to be one of the first areas that opens up in a revitalised Adj. 1. revitalised - restored to new life and vigor; "a revitalized economy"; "a revitalized inner-city neighborhood"
revived - restored to consciousness or life or vigor; "felt revived hope" Zimbabwe."
If Mr Lenigas makes a success of Lonrho's re-entry to Zimbabwe, it will mark a return to the company's roots.
Originally the London and Rhodesia Mining and Land Company, Lonrho remains a household name in Africa.
The company's head office switched to Liverpool when the company's mining operations were demerged in 1998.