WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-09-09 Time: 11:00:02 Posted By: News Poster
By Bright Madera
Harare – Zimbabwe’s economy has shown strong signs of recovery since liberalisation last year, despite severe funding shortages.
Corporates have failed to shrug off the critical recapitalisation period due to liquidity challenges. Listed companies were forced to embark on a string of rights issues and private placements after realising that debt option was unlikely to bring sustained growth.
These initiatives were a disaster as shareholders failed to follow their rights and secure underwriters as well as guarantors. Of all the companies, which carried out rights issues only OK Zimbabwe shareholders managed to get a 70 percent subscription rate.
Economists say the market should brace itself for a number of new capital raising initiatives following the failure by companies to use rights issues, private placements and debt to capitalise companies. However existing investment opportunities require proactive investors to unlock value and private equity provides these opportunities to investors.
Private equity is generally undertaken through a fund structure whereby a pool of funds is raised under one fund and managed by a team of dedicated professionals. The funds are governed by a limited partnership agreement between the private equity fund manager and investors in the fund.
Investments by private equity funds are predominantly in unlisted companies although significant amounts are also being invested in listed companies.
Unlike other investment instruments, all private equity fund investments aim to attain influence or exercise some form of control in the invested companies, either unlisted or listed companies.
Private equity investments are typically negotiated extensively by investors seeking to maximise their financial return while minimising financial risk.
Premier Banking Corporation executive director, Corporate and Investment Banking, Mr George Manyere said private equity is critical in creating and preserving value for investors in the fund and in the investee companies.
“Typically, it is investment on the basis of a medium to long term strategy with strong focus on enhancing and realising value through an exit either on the stock exchange or sale of the business to a larger group,” said Mr Manyere.
Over and above its key objective of achieving an attractive financial return to its investors private equity funds have significant impact on the investee companies and on the economy in general.
Studies have demonstrated that private equity backed companies grow twice as fast as other companies and create more new jobs than other companies.
Private equity funds also invest heavily particular in research and development, develop internationally with a high export annual growth and enhance their ability to raise capital on international markets.
Mr Manyere said the private equity route would enable Zimbabwean companies to secure long term channels of funding as well as developing the institutional investment industry.
Private equity opportunities in Zimbabwe are found in pension funds, insurance companies, Government agencies such as the National Social Security Authority and banks.
“There are a number of business opportunities existing in Zimbabwe for private equity as the economy emerges from post hyper-inflationary environment,” said Mr Manyere.
This investment class is coming at a time when the country’s political and economic environment is now favourable for investment.
The Government has also announced intentions to privatise some entities and financing of these projects can also come from private equity.
The existence of underperforming corporates in need of investment and modern management also requires funding as well as undervalued potential investments in need of capital.
Another economist said private equity would not fail in Zimbabwe because Africa is regarded as an emerging market and investors are keen to invest in these potential markets.
“Zimbabwe’s economic recovery signs and the country’s growing experience in private equity sector by Zimbabwean in the diaspora pose vast opportunities for private equity,” he said.
As of December 2008, South Africa had about US$12 billion in private equity funds and the United States had in excess of US$200 billion.
Europe and Canada had in excess of euro 100 billion and US$30 billion while sovereign funds from China, Singapore, United Arab Emirates and others were allocating billions of dollars in private equity annually.
Original Source: 
Published by the government of Zimbabwe
Original date published: 9 September 2010
Source: http://allafrica.com/stories/201009090398.html?viewall=1