CHAIRMAN’S STATEMENT

Dear Shareholder,

Background
Simbisa Brands Limited (“Simbisa” or “the Company”) is committed to providing the Pan-African population with affordable, accessible, nutritious, and delicious meals while offering the best quick service restaurant experience. Over the past six months, the business has continued to live up to its commitments in 604 stores across 9 countries. Simbisa continued to record strong year-on-year growth in customer counts and our restaurants served over 52.3 million customers, up 28.6% from the prior year. During the financial year ended 30 June 2022, the Group opened 86 new stores with a focus on Kenya and Zimbabwe.

Simbisa’s growth strategy and international footprint is appropriate to attract a diverse investor base and foreign currency capital. Furthermore, our success in various regions presents an opportunity for investors in the markets we operate in to participate in the Company’s upside.

The Government has made this possible by establishing the Victoria Falls Stock Exchange (“VFEX”) as a distinct future jurisdictional market, targeting foreign investors as well as global capital markets. Current rules and regulations of the VFEX go a long way in making the market irresistible to foreign capital.

Considering the above, I am writing to you in my capacity as the Non-Executive Chairman of Simbisa Brands Limited, duly authorised by the Board, to support the De-Listing of Simbisa Brands Limited Shares from the Zimbabwe Stock Exchange and the subsequent admission of the Company on the VFEX.

The rationale for the Proposed Transaction

• To attract foreign currency capital from investors to match the business’ foreign currency needs provided that Simbisa’s revenue streams are predominantly in USD for the Zimbabwean operations which are material to the group. Furthermore, a USD indexed exchange would support the organisations most appropriate functional currency and its sizeable ownership in foreign assets.
• To enable existing shareholders to realise the United States Dollar (USD) value of their holdings as compared to the ZSE where local currency returns were subject to hyperinflation.
• To take advantage of offshore settlement options which allow investors to efficiently repatriate their dividends. This would also eliminate the foreign currency risk of holding Simbisa shares as a foreign investor.
• The VFEX has lower trading costs compared to the ZSE.
• The VFEX also has tax incentives that enable the investor to retain more of their returns versus the ZSE.
• Overall, better investment terms would promote liquidity in the trading of Simbisa shares, making them more attractive to investors.
• To elevate Simbisa’s local and international profile thereby boosting its public and commercial standing.

I am optimistic that the de-listing of Simbisa from the ZSE and its subsequent listing on the VFEX will enhance long term shareholder value.

25 October 2022[Signed on Original]

ABC. Chinake
Non-Executive Chairman

Download Simbisa Brands Limited – VFEX Listing Circular to Shareholders