seach-icon
  • user-img

    QONEQT in News

    04-Sep-2022 05:00 AM


    thumbnail

    Not gold or FDs, Zimbabweans instead investing in cows

    The loss of confidence in public banks and financial institutions when inflation has risen to nearly 200 percent has meant that Zimbabweans are starting to invest in a new asset cows Wholeprice inflation has continued to rise across the world as the cost of food and fuel has skyrocketed in the aftermath of the Russian invasion of Ukraine As a result more and more households have been looking for safe investment opportunities For the residents of the African country of Zimbabwe who have lost savings in banks and pension funds over the past decades bovine investments are proving to be quite popular reported DW
    Asset management companies in the country are coming up with creative ways for investors to hold units of cattle Through unit trusts that are based on cattle purchases the investors are able to own certain units of cattle based on their investment The bovine instrument vehicle is proving to be popular in inflationprone country due to its ability to withstand price shocks
    While these companies are reinventing ways to invest in cattle in rural Zimbabwe and other parts of the world cattle still remains as a large source of wealth The United Nations Food and Agriculture Organization FAO has estimated that livestock accounted for 3538 percent of Zimbabwes Gross Domestic Product GDP
    But just like any other investment livestock isnt completely free from risk Drought disease and infection can decimate livestock populations and send investments plummeting But some economists still think its worth the risk
    #cows #investment
    Source: CNBCTV18