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Zimbabwe Report

Marcopolis presents the Zimbabwe Report focused on topics such as economy, investments and doing business, featuring interviews with Zimbabwe's leaders. The sectors under review in this issue are agriculture & agribusiness, banking & financial services, construction & real estate, hospitality & tourism, industry, services, telecom & IT, and many more. 

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VideosAugust 20, 2023

Pan-African Investments: Vhusi Phiri Shares the Visionary Journey Behind Diaspora Kapita

Written by Sandra Francisco
Published: August 20, 2023

Vhusi Phiri, CEO of Diaspora Kapita, an investment holding focused on investing in multiple sectors, shares the visionary journey behind the leading Pan-African investment company.

"Our journey began in 2014 with the establishment of Diaspora Kapita, a predecessor to Lake2Shore. We started with a core team of about five individuals, either based in South Africa or originating from Zimbabwe. Our approach centered around utilizing modest savings for investments in Zimbabwe, driven by an acute awareness of the country's recurring challenges. While situated in South Africa, we were committed to initiating something that could provide assistance and growth over the span of a few years, dovetailing into our retirement plans. The larger vision encompassed inclusivity, allowing others to join in later through forums and similar avenues. Our initial strategy involved monthly contributions, with each member putting in approximately 3,000 Rands. This collective pool amounted to roughly 15,000 Rands, which translated to around 1,000 USD at prevailing exchange rates. These funds were then accessible within the group, serving as a source for loans that could be invested. Returns generated were repaid to our company, completing the cycle. This approach continued for about one to two years, during which we recognized a need for growth beyond our equal shareholder structure and equal say. Thus, in 2014, we embarked on expanding our entity, leading to the birth of Diaspora Kapita. This growth coincided with our property acquisition in South Africa, a milestone that marked the formal emergence of Diaspora Kapita. The name itself reflects a focus on individuals residing outside their countries of origin, including cases such as Nigerians in America or Zimbabweans in the UK. The nomenclature "Diaspora Kapita" was deliberately chosen to acknowledge the origins of our initial capital and emphasize the diaspora-driven ethos. This marked the official commencement of our journey in 2014, as Diaspora Kapita transitioned into a more extensive entity with the inclusion of additional participants, expanding our initial team of five to eight members. A significant shift in our strategy involved shedding rigid constraints. Recognizing the significance of accommodating individual contributions based on capacity, we moved away from an entirely equal participation model. Our collective agreement led to each entity member committing to a minimum monthly contribution of 3,000 Rands for approximately three years. These funds were then strategically channeled into investments spanning various sectors. It is important to note that our company ethos leaned towards passive investment, recognizing the professional commitments of our members in other spheres. At the same time, my cousin and I maintained our separate assets, contributing to the overall growth of the company. This dual-pronged approach has been instrumental in shaping our journey since its inception. We also operated our own companies within Zimbabwe. Around 2019, we arrived at a juncture where it became evident that to facilitate the growth of Diaspora Kapita, active management was imperative. Prior to that, I had been employed at PwC, an auditing firm, for approximately five years, commencing in 2014. My entry into PwC was through the sale of a consulting company that I had co-established with five individuals. PwC approached us and acquired our company, a service-oriented entity that entailed purchasing contracts and expertise, securing a two-year commitment for services. In 2019, the timing seemed opportune for me to transition from PwC and assume a full-time role in leading Diaspora Kapita. Hence, in 2019, we initiated the full-time management of Diaspora Kapita. Concurrently, we recognized the need for consolidation. Considering my involvement in various companies alongside other partners, a decision was taken to streamline and diminish conflicts of interest. All these entities were amalgamated as subsidiaries under the umbrella of Diaspora Kapita. Our overarching objective from the outset was to eventually extend the scope of Diaspora Kapita to encompass the wider diaspora community, a goal that is currently in progress. As we move forward into September and beyond, the plan is to open up Diaspora Kapita to the broader Zimbabwean community. This initiative aims to facilitate investment opportunities within Zimbabwe, South Africa, and other African nations through the diaspora channel. This encapsulates the foundational journey that brought us to this point", says Vhusi Phiri.

 

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