Capital market structure: Summary highlights
ZIMBABWE’S financial services sector has three main sub-sectors. The Reserve Bank of Zimbabwe regulates banks with depositors as the final consumers. The Insurance and Pensions Commission regulates insurance companies and pension funds with the policy holders and pensioners as the consumers. The Securities and Exchange Commission of Zimbabwe (SECZ) regulates the securities market (Stock Exchanges, Securities Dealers and Asset Managers amongst other market players) with the investors being the final consumers.
All the three regulators report to the Ministry of Finance and Economic Development. Part of the Ministry’s main functions is to formulate and coordinate policies through national budgets, mid-term fiscal policy reviews and related policy strategies. This is a key function aimed at creating an enabling investment environment in support of overall economic activity. Some points to remember: Issuers are the borrowers. Borrowers should always be prepared to pay a price on funds borrowed. Investors are the savers on the market. Investors always expect a return on lending their excess funds to borrowers. Licensed players are the intermediaries between the issuers and the investors. A list of licensed / registered capital market intermediaries is accessible from the SECZ website: <http://www.seczim.co.zw/regulated-entities>. Zimbabwe’s capital market has two registered Stock Exchanges, namely, the Zimbabwe Stock Exchange (ZSE) and the Financial Securities Exchange (FINSEC). Stock Exchanges provide platforms for the buying and selling of securities, e.g. bonds. Capital markets match long-term investments with long-term capital. They serve as a gauge for corporate performance hence a market for corporate control and a barometer for broader economic growth.
The main functions of capital markets include economic growth, capital formation, liquidity, savings and proper price discovery through enhanced market transparency.
Upcoming AGMs and EGMs: Axia Corporation Limited, Chapman Golf Club, 1 Henry Chapman Road, Eastlea, Harare, November 27, 2018, 0815hours. Econet Wireless Zimbabwe Limited, Econet Park, 2 Old Mutare Road, Msasa, Harare, Zimbabwe, November 29, 2018, 0900hours and 1000hours.