The Zimbabwe Stock Exchange (ZSE) is facing significant challenges, including declining interest from asset managers and retail investors. According to the Securities and Exchange Commission of Zimbabwe (SecZim), local asset managers have reduced their exposure to the capital market by 50% over the past five years.
SecZim’s CEO revealed that asset managers’ exposure to listed equities has dropped to 29%, while exposure to property has increased to 48%. Retail investor participation has also decreased, with only 1% of investors participating in the market.
SecZim’s CEO has called on the ZSE to urgently work on recovering lost market share. He emphasized the need to re-engage both domestic and foreign investors and to address negative perceptions and high transaction costs.
The ZSE has listed itself on its own platform, a move aimed at increasing transparency and attracting new capital. The exchange’s chairperson said the decision was a bold and deliberate move to demonstrate faith in the market’s ability to drive national development.
Both SecZim and the ZSE appear aligned in their vision to rebuild confidence, attract investors, and modernize the country’s financial systems. However, market watchers say real progress will depend on restoring macroeconomic stability and improving public trust in financial systems.
The ZSE’s listing is a significant step towards increasing transparency and attracting new capital. However, the exchange faces significant challenges, including declining investor interest and regulatory bottlenecks. The success of the ZSE’s listing will depend on its ability to address these challenges and restore confidence in the market.
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