Consumer protection gets more teeth

The Consumer Protection Commission (CPC) has signed a Memorandum of Understanding (MoU) with the Securities Exchange Commission of Zimbabwe (SecZim), in a move expected to enhance consumer protection within the financial services sector.

The agreement, signed last week, sets out a framework to safeguard consumer rights in financial markets, promote transparency, and ensure fair treatment of investors and consumers.

Speaking at the signing ceremony, CPC chief executive officer Zororo Muranda said the collaboration would bolster oversight and improve consumer confidence in the financial system.

"As the CPC, our mandate is to protect consumers of goods and services, and financial services are one of the most important areas in any economy. This is why we paid a lot of attention to the Securities Exchange Commission," Muranda said.

"The Securities Exchange Commission deals with shares and securities of different forms, which move significant funds in and out of the country. It is therefore crucial that consumers are protected in this space."

Muranda added that the MoU would facilitate closer cooperation between the two regulatory bodies in addressing consumer complaints, sharing information on financial products, and conducting public education campaigns to raise awareness of consumer rights.

He noted that while SecZim's mandate focuses on regulating Zimbabwe's capital markets to ensure transparency, accountability, and investor protection, CPC's wider role is to ensure consumers across all sectors receive fair treatment and accurate information.

"Just as SecZim ensures investors are treated fairly and provided with truthful, clear and adequate information, CPC's role is to make sure consumers across all sectors are afforded the same level of protection," Muranda said.

SecZim acting chief executive Grace Berejena welcomed the partnership, describing it as a proactive step towards protecting investors and preventing market abuses.

"This partnership is about proactively addressing potential violations of consumer rights within our capital markets. By collaborating with CPC, we aim to combat any such issues that may arise in the future," she said.

The MoU underscores the growing recognition of consumer protection as a key pillar of financial stability and investor confidence in Zimbabwe's financial markets.