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ZSE to list on own bourse

by Staff reporter
22 Jun 2024 at 11:37hrs | Views
The Zimbabwe Stock Exchange (ZSE) is preparing to self-list on its own platform in the upcoming year, marking a significant milestone in its history. This move, aimed at accessing better risk-adjusted capital and enhancing brand visibility, was announced by ZSE board chairperson Caroline Sandura in the exchange's 2023 annual report.

Founded in 1896, ZSE plays a crucial role in Zimbabwe's capital markets with over 40 listed equities and ownership of the Victoria Falls Stock Exchange (VFEX), which trades exclusively in US dollars. Sandura outlined several objectives for the self-listing initiative, including unlocking shareholder value, strengthening corporate governance, and attracting new business opportunities from public and private sectors.

The self-listing process is progressing, pending shareholder approval at an Extraordinary General Meeting anticipated later in 2024. The Securities and Exchange Commission of Zimbabwe has developed draft self-listing rules for exchanges, already approved by the government.

Despite economic challenges expected in 2024 such as high inflation and currency depreciation, Sandura remains optimistic about the potential for inflation-hedging assets and increased investor participation, especially on VFEX, which is seen as a viable capital-raising option amidst economic uncertainties.

Justin Bgoni, CEO of ZSE, echoed optimism regarding the business environment ahead, foreseeing positive impacts from recent currency changes and enhanced product diversity on VFEX. Despite a challenging 2023 marked by global conflicts, El Nino-induced drought, and currency volatility, Bgoni highlighted VFEX's progress with new listings and improved trading levels, reflecting growing market confidence.

In 2023, the ZSE Allshare Index surged by 981.54%, driven by local price uptrends despite currency depreciation, while VFEX's Allshare Index saw a 28.86% decline but showed resilience and growth potential in challenging times.

Overall, ZSE's self-listing plans underscore its strategic vision to bolster market resilience, attract investment, and navigate economic fluctuations while expanding its role in Zimbabwe's financial landscape.

Source - the independent