ZSE in drive to broaden offering
THE Zimbabwe Stock Exchange Limited (ZSE) says it is looking at finishing all the projects it initiated in the financial year 2019 that are meant to enhance the bourse into a robust and preferred exchange in the region.
The Victoria Falls Exchange (VFEX) is part of the projects which are expected to broaden the products offered by the ZSE in an effort to help companies and investors raise capital as well as demystify capital markets largely viewed as elitist.
As part of the ZSE's five-year strategy to 2024, the bourse formulated a concept for the establishment of the Victoria Falls Stock Exchange (VFEX) with an objective to attract foreign investment and help companies raise foreign currency.
The exchange will operate from the resort town in USD targeting mining, tourism, horticulture, tobacco and finance.
“It is estimated the sectors require more than US$20 billion to resuscitate the industries.
“The settlement and clearing of transactions consummated on the VFEX should be settled according to international best practice including offshore” said chief executive officer Justin Bgoni in a review in the bourse's 2019 annual report.
Last year the ZSE also launched projects such as the exchange traded funds (ETF) and the bourse is working with a local issuer to have its first ETF listing.
“Going forward the ZSE is looking to conclude most of the projects initiated in 2019,” said Bgoni.
“We have laid a robust foundation to build and become the preferred securities exchange in Africa.
“Our team stands ready to exploit emerging opportunities, fully embracing our core values of commitment, diligence, innovation and integrity.
“Our strong brand, digital transformation, ICT capabilities, training expertise and relationships with issuers and other stakeholders will remain the key enablers of our business,” said Bgoni.
Last December, the ZSE signed a memorandum of understating with the Harare
Receivables Exchange Limited on the setting up of a receivables trading platform.
The platform will allow provision of working capital solutions to both established businesses and Micro Small to Medium Enterprises (MSMEs) at competitive rates.
Among its initiatives to increase awareness on the stock market, the ZSE launched the ZSE Training Institute, an initiative that started in 2019 to offer training courses to market participants. According to the ZSE chief, the training course are meant to deliver specialised training to stakeholders on various capital markets subjects.
Meanwhile trading on the bourse was suspended on June 29th in compliance with Government directive after the bourse listed among platforms allegedly used to sabotage the economy.
Government singled out mobile money platforms and the bourse as some of the platforms that were being used to undermine the economy. Indications are however that trading may resume soon, according to Finance and Economic Development Minister Mthuli Ncube.