The latest report gives a positive perspective on current developments.

Moneyweb.com

Imara, the Pan-African financial services group, has given international fund managers and sophisticated investors the thumbs-up on prospects within the Zimbabwe economy.

Imara provides investors in major international centres with a regular stream of reports on economic conditions in numerous sub-Saharan markets as the group markets of a wide range of Africa-focused equity investment products.

The latest report to investors by the Imara Zimbabwe Fund gives a positive perspective on current developments.

Fund manager Grant Flanagan states: “Real GDP growth remains on target for 9.3%. In our view this is conservative, but is easily one of the highest growth rates in Africa.

“Following a good agricultural season, the country should be at least 80% self-sufficient in food… The mining sector also continues to steam ahead with gold production up 37.5% year on year. Platinum production was 61% of total 2010 production at the halfway stage.

“Various reforms are targeted, with a focus on health and education but without any change to previous policy.”

Flanagan believes policy consistency like this may go some way towards ensuring the country qualifies for debt relief.

The mid-year corporate reporting season is also looking good, say the Imara investment researchers.

A first-quarter update by Delta, the brewing company, showed 47% profit growth off 43% growth in revenue, with demand continuing to outstrip supply.

Farm equipment-maker Zimplow reported a 43% rise in first-half revenues, with the domestic market accounting for 84% of sales. Local demand was driven by strong agricultural commodity prices, in particular cotton, notes Flanagan.

A first-quarter update from food retailer OK showed year-on-year revenue growth of 59.8%.

Flanagan concludes: “All this combines to provide positive reinforcement of the growth in domestic demand.”