Enacy Mapakame Business Reporter
Shareholders of Seed Co International Limited can now receive their dividend payments below US$10 through the C-Trade platform as a way to enhance ease of transacting and cut costs.
However, Seed Co International shareholders with dividends above US$10 have an option to have their dividends deposited in their C-Trade accounts or to provide local US$ FCA Nostro Investment account details or local RTGS account in order to receive their dividend.
The initiative comes as efforts to address challenges related to payment of small dividend amounts below US$10.
“Seed Co International Limited shareholders are advised that due to operational challenges related to payment of dividends below USD10, Seed Co International Limited hereby gives shareholders an option to receive their dividends through the C-TRADE platform,” said Escrow Group, head sales and marketing Eliah Sarayi.
C-TRADE is a mobile and online platform for the trading of securities on Zimbabwe’s capital markets and allows access to full trading functionalities for the Financial Securities Exchange Limited (FINSEC) and the Zimbabwe Stock Exchange (ZSE).
Last year Zimbabwe launched the C-Trade, which effectively opened capital markets to all and enhance financial inclusion.
Escrow Systems, a subsidiary of Escrow Group, provided the technology that enables mobile share trading.
According to Escrow, C-Trade enables investors an opportunity to accumulate small dividends and participate on ZSE and Finsec anywhere at any time as well as access to shareholder portfolio information.
Mr Sarayi added receiving dividend payment via C-Trade enables investors to accumulate their funds on the platform which they can later convert to local currency for withdrawal. Investors also have an option to accumulate the funds on the platform and purchase more shares, for other counters as well.
“Moving small amounts like US$10 and less is a challenge in itself. But if the funds are deposited into a C-Trade account, it is an advantage. You can let that money accumulate for later withdrawal.
“This can also be an investment strategy within the C-Trade, you can purchase more shares, not only Seed Co shares in this case but it is an opportunity to diversify your portfolio,” said Mr Sarayi.
Shareholders are therefore required to have the C-Trade mobile application on their devices in order to open and activate accounts giving them access to their C–Trade portfolio, view foreign currency dividend, buy shares or convert the money to local currency for withdrawals.
Last year, the seed manufacturer unbundled 71 percent of Seed-Co International, which was represented by 242 million ordinary shares.
On completion of transaction, Seed Co Limited retained 26 percent stake in Seed Co International.
Seed Co International then listed on the Botswana Stock Exchange (BSE).