Foreign investors flock back to ZSE
ROBIN PHIRI
Foreign investors are increasingly turning their attention back to the Zimbabwe Stock Exchange (ZSE), with participation surging to 26.53% in the second quarter of 2025, up from 15.39% in the first quarter.
The ZSE attributed this sharp increase to growing investor confidence in Zimbabwe’s economic prospects and ongoing market reforms.
“Foreign investor participation was 26.53% in Q2 2025 compared to 15.39% in Q1 2025. Q2 2025 recorded a net sells position of ZWG219M,” the ZSE said.
This surge in foreign activity played a pivotal role in lifting the total market turnover to ZWL1.49 billion, a 53.14% increase from the previous quarter.
Analysts say the uptick reflects mounting global interest in Zimbabwe’s investment story, buoyed by government-led efforts to stabilise the economy, improve transparency, and attract international capital. These reforms—spanning fiscal discipline, currency liberalisation, and ease of doing business—have helped bolster foreign investor sentiment.
“The Zimbabwe Stock Exchange’s ability to lure foreign investors is a clear testament to the country’s improving economic trajectory,” one analyst noted.
Foreign investor participation is welcomed by the ZSE as it brings not only much-needed liquidity but also international expertise and discipline to the local market. The trend is expected to continue as long as Zimbabwe maintains its reform momentum and the economy stays on a positive growth trajectory.
However, despite increased trading activity and foreign interest, the total market capitalisation recorded a slight decline.
“The ZSE market capitalisation as at 30 June 2025 was ZWG60.97bn, a decline of 3.09% from the previous quarter’s ZWG62.92 bn,” the exchange said.
This marginal dip is attributed to portfolio realignments and sector-specific shifts, which are not uncommon in emerging markets experiencing structural transitions.
Market watchers believe that continued foreign inflows will enhance liquidity, promote efficient price discovery, and ultimately strengthen investor confidence, creating a virtuous cycle of growth.
Overall, the growing involvement of foreign investors on the ZSE is viewed as a positive development for both the stock market and the broader Zimbabwean economy. As reforms take deeper root and the macroeconomic environment improves, the ZSE is poised to play an even more critical role in mobilising capital and supporting sustainable economic development.
