Imara launches dedicated African resources fund

The Pan-African Imara financial services group today (Thursday, July 2) announced the launch of a new investment fund – the Imara African Resources Fund (IARF).

“The new fund is a renewed expression of long-term confidence in Africa as an important investment destination,” said Imara Group CEO Mark Tunmer.

Imara directors initially seeded the fund to establish a six-month track record before opening the IARF to wider investor participation. It is managed by Bruce Williamson, an investment professional with a 25-year career as a mining analyst. Earlier experience included deep-level mining with Gold Fields. He holds a B.Com from the University of Cape Town.

IARF is the latest addition to Imara’s Africa Series of investment funds. Others in the series are the Imara Zimbabwe Fund, the Imara Nigeria Fund and the Imara East Africa Fund. The Series builds on the success achieved by the Imara African Opportunities Fund, a product that takes long-only equity positions in a wide range of African jurisdictions and economic sectors.

The new fund already has positions in companies with underlying assets in South Africa, Zimbabwe, Botswana, Tanzania, Ghana, Mali and several other African countries. The current mix of commodities includes gold, platinum group metals, coal, ferrous metals, chrome oil and gas.

Mark Tunmer added: “We believe timing is ideal. Commodity markets corrected sharply downwards in 2008, but in the first half of this year we have seen a strong rebound. This is not a temporary phenomenon. The long-term fundamentals are strongly positive.

“Some investors remain risk-averse, but we see indications that a shift is beginning to occur in sentiment, with a move toward real assets as a hedge against inflation.

“As a company rooted in Africa and known for our commitment to the continent, we also felt it was important that Imara give a lead and back our pro-Africa sentiments with a tangible expression of confidence in Africa – a fund focused on mining and minerals is about as tangible as you can get.”

IARF is an offshore-registered fund denominated in US dollars and targeted internationally at sophisticated investors and fund managers.