ISLE of Man investors, Cambria Africa Plc, is struggling to recover US$100 million invested in Zimbabwe owing to the economic headwinds facing the country, NewsDay Business can report.
Cambria is a holding company that owned several investments in Zimbabwe including Payserv Africa, a fintech services provider, and Millchem, a specialty chemicals distributor.
However, years of economic instability, policy inconsistencies and difficulties in repatriating funds outside Zimbabwe has forced Cambria to exit from most of its local operations.
“Cambria, which invested primarily in Zimbabwe, received almost US$100 million in funding from shareholders. If we succeed in returning 5-10% of that investment to shareholders in distributions, it will go a long way in restoring investor confidence in future projects,” Cambria chief executive officer Samir Shasha told NewsDay Business.
“Having delisted, such investment will likely come from other vehicles. Cambria shareholders have confirmed their faith in its management team and we believe they will support us should we identify new opportunities.”
Cambria’s key holdings in Zimbabwe include the Mount Pleasant property, which housed Paynet’s offices, Old Mutual and Nedbank shares originally acquired in South Africa, US$1,3 million in legacy debts under the Ministry of Finance and cash reserves.
However, attempts to liquidate these assets have been a hassle. The 10 000-square-metre Paynet property has been put up for sale, with estate agents hinting at interest from potential buyers, including a party exploring a hotel development near the Chinese Embassy.
Despite this, no confirmed sale has been finalised.
- Cambria to disburse US$3,1m in dividends, share redemptions
- Cambria struggles to recoup US$100m invested in Zim
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“The sale of the property is dependent on the commercial real estate market,” Shasha said.
“It is in a prime location near the Chinese Embassy, and we expect a favourable outcome, but the process is taking time.”
Shasha also highlighted the challenges in recovering legacy debts, which have been a major hurdle.
“Progress in recovering these debts abruptly stopped. Sadly, US$900 000 of these debts was misplaced by the Ministry of Finance and only acknowledged after funding had dried up for debts under US$1 million,” he said.
Meanwhile, efforts to repatriate funds from its Old Mutual and Nedbank shares have stalled due to exchange control policies.
“We remain perplexed about the repatriation of these shares, as they originated outside Zimbabwe, were funded externally and yet got ‘caught’ by the policy aimed at controlling the parallel exchange rate,” Shasha said.
He maintained that patience and strict cost controls would enable Cambria to return some capital to shareholders.
“Cambria shareholders have confirmed their faith in our management team, and we believe they will support us should we identify new opportunities.”
In August 2024, Cambria announced plans to distribute capital to shareholders through dividends or share redemptions.
The first tranche of this distribution, worth US$3,1 million, was allocated for a compulsory partial share redemption and executed last month. A second tranche is expected following the sale of Cambria’s Mount Pleasant property, but the timing and final proceeds remain uncertain as of now.
