Zimbabwe Banks On Cows As Inflation Soars, Investing money into cattle is a growing business in Zimbabwe, where inflation is skyrocketing. Many people now consider it safer than putting money in the bank.
They are an investment on four hooves. Cows As Inflation Soars, Cattle have become a safe financial option for some Zimbabweans. Hyperinflation in the southern African nation has led to a loss of public confidence in banks and conventional pension systems. Zimbabwe’s annual inflation rate jumped to 192% in June, the highest level over a year. The reason behind this is the war in Ukraine, which is driving global commodity prices higher. Over the last 20 years, many citizens have lost savings in banks and pension funds Some are now looking for safer ways to protect their investments. And one option is investing in cattle. Ted Edwards is the chief executive officer of Silverback Asset Managers, which some also mockingly call a “mooing bank.”
It is a unit trust primarily based on cattle. But, according to Edwards, business is booming. “Cows seem to be a safe option for some,” Edwards said, adding that some asset management companies are creatively coming up with the old tradition of investing in cattle to create wealth for investors. Cows As Inflation Soars, Edward’s asset company has established a unit trust investment vehicle where citizens can invest in cattle using the local currency. Over time, cattle have proven that they can absorb inflationary shocks, Edwards told DW. “What we have done is to create a unit trust fund called Mombe Mari trust fund. We have essentially unitized cattle into the trust fund as a means of attracting investment into the cattle industry.” Currently, one unit is equivalent to hundred kilograms of live cattle. “It is open to investment for anyone out there who wants to buy units in the unit trust.” While a cattle unit trust may be a new phenomenon in Zimbabwe, cattle have traditionally been a source of wealth for rural farmers.
Source: This news is originally published by allafrica