Stratus to list Zimbabwe’s first commodity fund on FINSEC next month with the intention to raise US$50m

LIVINGSTONE MARUFU

Stratus Capital Partners on Monday announced the imminent listing of  Zimbabwe’s first ever agriculture-based commodity fund on the Financial Securities Exchange (FINSEC) with the intention to raise US$50m.

Speaking at a breakfast meeting, COO, John Bere, said Stratus will issue out 50 000 000 units trading at US$1 each.

“As Stratus we are aiming  to raise US$50m to fund post-harvest agriculture in Zimbabwe  but  the number is just  a drop in the ocean  as the total requirement is around US$900m. This is  a start, but we would want to see the fund grow over time,” said Bere adding that the amount will be raised from the 50 000 000 initial units available at US$ each.

He said with that amount, the country  would have done a lot in terms of enhancing agriculture production in the country.

Bere  said the Stratus Commodities Fund is expected to address  widespread challenges faced in the  agriculture sector  especially during  the marketing season.

The fund  also seeks to encourage efficient price discovery, enhance liquidity flows into the commodities market, improve value chain and post-harvest financing.

Bere said the country’s  commodities market presents significant opportunities for growth and  value creation.

The inaugural fund will  be the first of its kind as  the  local financial markets continue to make strides toward harnessing local resources and expertise to provide sustainable funding solutions that support the growth of the economy.

Speaking at the same event,Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary John Basera  said  the commodity fund will play a significant role in addressing the financing and marketing  of agriculture commodities challenges.

“As the Ministry, we are delighted  to see the strides our country is making  in promoting  sustainable production  and productivity  of agriculture complemented by an efficient  and transparent  market.

“It is pleasing  to note that our country has taken one more big step towards  international best practice by the establishment  of this commodity fund,” Basera said.

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