A senior official in the NMBZ marketing department told The Zimbabwean that this "is the way to go to hedge against inflation". However, Zimbabwe has the lowest inflation rate in Africa right now, at about three percent.
"This is because of the Reserve Bank of Zimbabwe's decision to dollarise," NMBZ Chief Executive, James Mushore, said. "I wonder, however, how things would be if the country still used Zimbabwe dollars?"
NMBZ, which chalked up a profit before taxation of US$2,1 million for the period ended June 30, 2011, said rental income amounting to US$3 840 had been received and no operating expenses were incurred on the investment properties in the current period.
"The investment properties comprise two sets of properties namely, the property along Borrowdale Road and various other properties," Benson Ndachena, NMBZ Chief Finance Officer said.
Other financial institutions listed on the Zimbabwe Stock Exchange have also joined the property sector to "hedge against inflation and preserve value for their clients".
They include Trust Financial Holdings Limited (Trust) led by William Nyemba and CBZ Financial Holdings Limited, currently led by Dr John Mangudya.
"The property market is currently not stable due to liquidity constraints and hence comparable valuers are also not stable," Ndachena said about Zimbabwe's property sector.
Post published in: Business