Silverback launches unique ‘cattle bank’

SILVERBACK Asset Management Company has launched Mombe Mari Trust a fund created as an investment vehicle in the Zimbabwe beef industry by identifying businesses that will contribute to the growth of the sector.
Mombe Mari Unit Trust Fund is linked and secured by live cattle.
Officially launching the trust on Wednesday, Agriculture deputy minister Vangelis Haritatos said the government was encouraged by the forward-thinking and innovative approach meant to contribute to the cattle industry and the Zimbabwean economy.

Silverback will seek opportunities to partner with other established cattle breeding businesses in Zimbabwe with a view to growing the capital base of the fund which in turn provides capital for the businesses to grow and enhance the returns for the investors

“Investments in livestock are known for their ability to preserve the investment value in Africa. Livestock and cattle in particular are the most stable currency with a guaranteed impact to our economy,” he said.

Haritatos said the Mombe Mari Trust launch was commendable towards the transformation journey of livestock recovery and growth in Zimbabwe.
“My ministry launched the livestock recovery and growth plan which is part of the Agriculture and Food Systems Transformation Strategy which seeks to achieve a US$8,2 billion agriculture economy by 2025,” he said.

Silverback is offering investors an opportunity to invest in a unit trust fund, which invests in physical live cattle backed notes.
The initial number of units available for investments is 13 000 of 100kg per unit, representing notes on 1 300 000 kilogramme of live cattle.

“The Livestock Recovery Growth Plan is meant to chart a new trajectory for livestock production with priority on animal nutrition, genetic improvement, animal health and market development among others,” said Haritatos.

He said the Livestock Recovery and Growth Plan sought to contribute US$4 billion of the US$8,2 billion agriculture industry.
Silverback chief executive Shaun Edwards said the launch offered investors a unique opportunity to invest in a capital preserving investment instrument

“Initially the assets under management are cattle which are currently bred and raised by a successful cattle breeding producer in Zimbabwe, Fabwell Farming Private Limited.

“Looking ahead, Silverback will seek opportunities to partner with other established cattle breeding businesses in Zimbabwe with a view to growing the capital base of the fund which in turn provides capital for the businesses to grow and enhance the returns for the investors,” said Edwards.

He said revitalising commercial beef production through a revival of the national herd with good genetics would create a stable platform for future industry growth.

“Priority will be to put the Zimbabwean cattle industry back on the international stage which will drive export opportunities and future prospects of foreign currency generation,” he said.

The Securities and Exchange Commission of Zimbabwe outgoing chief executive, Tafadzwa Chinamo, said he admired Silverback’s innovation, which he said would offer investors an opportunity to preserve their investment and earn better returns.

“This is a new concept which I must say we admire from a commission point of view. We admire your innovation.
“You need to do a lot of education so that people understand this concept which has been a learning curve for us,” he said.