Capital Market Participation by Retail Investors

Capital markets are a barometer for measuring economic growth, as such there is need for effective capital raising tools that enhance market efficiency. A well-oiled capital market stimulates economic performance and also promotes a savings and investment culture for the citizens. The participation of retail (individual) investors has remained rather subdued over the years with capital markets investors being dominated by institutions such as pension funds, fund managers, assets managers and other corporate investors. One way of providing such effective capital raising tools is by making it easy and efficient for broader participation of potential investors, especially those who have traditionally remained on the peripheries of capital markets such as retail investors.

The Government of Zimbabwe, through the central bank and the regulator of the capital markets Securities and Exchange Commission of Zimbabwe (SECZ) are on an aggressive drive to promote active participation by marginalised communities in all sectors of the economy including the capital markets. According to some studies on financial inclusion in Zimbabwe done about 5 years ago, it was established that the levels of financial inclusion in the capital markets were as low as 5%, meaning almost 95% of our population do not actively participate in capital market activities. While latest statistics may not be readily available, there has not been major improvements in this regard. It is against this background that C-TRADE is a keen player in promoting accessibility of the local market by providing a diverse range of investment products suited for all investors including the retail investors and trading platforms that make it easy to access the market.

C-TRADE is proud to be the pioneer of mobile and online trading in Zimbabwe using the technology that is tried and tested in other markets where the participation of retail investors has shown significant potential. As mobile penetration continues to grow, so are the opportunities to harness the power of technology and increase the participation of investors in securities trading. The ability of mobile and online platforms to reach people from the grassroots levels enables participation by the smallest retail investor and this can translate into enhanced GDP growth as more capital will be channeled to the productive areas of the economy.

This mobile and online technology is also available to institutional investors and allows trading of all types of securities listed and tradable on both the Financial Securities Exchange (FINSEC) and the Zimbabwe Stock Exchange (ZSE). C-TRADE would like to see increased participation of individual investors in the trading of securities and will therefore continue investing in research and development of suitable delivery channels.

Retail investors wishing to buy or sell securities using the C-TRADE platform simply need to open a trading account for free by downloading the C-TRADE mobile app from Google Playstore or App Store. Alternatively, they can visit ctrade.co.zw or dial *727# across all mobile networks. Trading using the C-TRADE platform is completely automated and convenient.

To start investing on the ZSE and FINSEC listed counters on the go, simply download the C-TRADE mobile app or dial *727# across all mobile networks. Alternatively visit ctrade.co.zw to register.

Econet subscribers— 08080277

Netone subscribers— 08010077

Live chat on web portal Email C-TRADE on ctrade@escrowgroup.org

WhatsApp 0737594405