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SA’s Guma looks to invest US$1.2bn in Zimbabwe

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Robert Gumede, founder and executive chairman of South African investment firm the Guma Group of Companies, plans to invest US$1.2 billion in Zimbabwe.

Gumede, who is currently on a visit to Zimbabwe, told various state media that he believes good times are back in the southern african country.

In an Airport interview upon arrival, Gumede reportedly said he was optimistic about investing in the country under the new political dispensation, owing to favourable policies pitched by new President Emmerson Mnangagwa.

He is quoted by the Herald as saying, “I am happy to be here in Zimbabwe just to see what one can do in assisting Government in achieving its short-term goals of turning around the economy of the country. As an entrepreneur and businessman who is involved various businesses, I felt it was an opportune time to come into your country and identify some of the opportunities that my company will be able to invest in.”

According to the report, the investment deal involves key sectors of the economy which include infrastructure development, energy, health services, tourism and financial services.

This move comes after Guma delisted from the Johannesburg Stock Exchange (JSE) about two years ago, after 15 years of being listed as Gijima.

The IT services company went private in May 2015 after Gumede’s R2.20 per share offer to delist it (via the Guma Group), was accepted by 99.38% of Gijima’s shareholders.

At the time it left the bourse, it had been the worst performing ICT stock on the JSE over five years, having dropped 89% in value over that time.

Last year, the company told ITWeb that its ongoing turnaround strategy was going extremely well.

“Having implemented our new operating model, we are pleased to say that part of the success of the turnaround has been our ability to retain multibillion-rand contracts in the face of fierce competition. We continue to participate in complex tenders and win new contracts.”

According to EWN, the new government of President Mnangagwa is desperate to lure investors. Observers and diplomats say so far Mnangagwa’s administration is making the right noises but needs to speed up economic reforms to improve the investment climate.

Source: ITWeb Africa

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