ONE OF the most highly regarded fund managers in London has committed $US25 million of clients' money to investment in Zimbabwe.

Neil Woodford, who manages about ₤15 billion ($26bn) for Invesco Perpetual, has bought a stake of 29.5 per cent in Masawara, a fund that will be valued at $US80m ($88m) when trading in the shares begins on London's Alternative Investment Market in a fortnight.

Masawara intends to buy into Zimbabwean mines and oil companies, agriculture, telecommunications and property as well as to take part in privatisations of state-held assets.

Masawara, which is incorporated in Jersey, owns 40 per cent of Harare's biggest commercial property development and almost a third of TA Holdings, another investment company with stakes in agriculture and mining.

TA is run by Shingai Mutasa, a Zimbabwean businessman, who will identify Masawara's future investments.

By Staff reporter and agencies