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(HERALD) Lonrho to funnel US$100m more into Zim investments

Lonrho to funnel US$100m more into Zim investments
Business Reporter

LONRHO Plc plans to inject a further US$100 million for investments on the back of anticipated economic recovery following the formation of an inclusive Government, executive director Mr Geoffrey White has said.

The company’s website shows that, "the investment betting on a recovery in Zimbabwe’s economy, will announce ‘big’ acquisitions."

"We’ll be announcing a couple of really big deals in the next two to three weeks," he said.

Lonrho Plc chairman Mr David Lenigas, said LonZim, will still be "fine" should the economy fail to turn around in the next five years.

The conglomerate has 20 percent stake in LonZim.

While LonZim’s existing investments are "commercially sound, basically none of them are making money, Adopting South Africa’s currency, the rand, would "bring an element of stability" for businesses in the country", he added. "Zimbabwe should adopt the currency to stabilise the economy"

LonZim is an investment company created by London-listed Lonrho Plc to acquire a portfolio of commercial property projects and investments in assets and companies in Zimbabwe that have significant opportunity for future growth.

The company has so far acquired a 60 percent stake in a payroll company that works with 16 banks Paynet, Celsys, and Millpal, an industrial chemical supplier.

Lonrho, through its subsidiary, LonZim, has started exploring avenues for investments in the country with between six to eight deals expected to be sealed soon.

Mr Lenigas said within the next two to three years, LonZim would be the largest conglomerate in Zimbabwe.

Lonrho also operates East Africa’s biggest private airline and plans to start operating its Fly540 airline in Angola in the next few weeks.

Labels: LONRHO, LONZIM, NEOCOLONIALISM, SANCTIONS

posted by MrK @ 9:00 PM