Woodford buys into Zimbabwe investment vehicle

Invesco Perpetual star manager Neil Woodford has committed $25m to a AIM-listed vehicle which will make investments in troubled African nation Zimbabwe.

Woodford, the group's head of investments, has bought a 29.5% stake in Masawara, a $80m fund set to begin trading on the AIM market in a fortnight, The Australian newspaper reports.

Masawara is looking to invest in Zimbabwean mines, oil companies, agriculture, telecommunications and property - as well as take part in privatisations of state-held assets.

The Jersey incorporated Masawara owns 40% of capital 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 Zimbabwean businessman Shingai Mutasa, who will also identify Masawara's future investments.

Under the rule of President Robert Mugabe, Zimbabwe's once prosperous agricultural economy has been run into ruin. Hyper-inflation has been rampant in recent years, with the country last year forced to issue a Z$100trn note.