NDAMU SANDU
The Zimbabwe Stock Exchange (ZSE) expects the listing of real estate investment trusts (REITs) and equities on the bourse as more companies seek to raise capital.
The bourse has struggled to attract new equities listing, recording a single listing in 4 years with some companies such as Padenga and Bindura Nickel Corporation exiting ZSE in favour of the foreign currency-only exchange, the Victoria Falls Stock Exchange (VFEX).
However, it has seen the entry of exchange traded funds (ETFs).
“We are happy with the pipeline. We are looking at two or three REITS to list this year, another ETF and one or two equities,” ZSE CEO Justin Bgoni told an annual general meeting yesterday.
Three debt listings will be listed on the foreign currency only bourse, the VFEX, Bgoni said.
The bourse should also expect ETFs, depository receipts and equities, he said.
“We remain bullish in terms of listing on ZSE and VFEX. Our main worry is timing. We hope the environment does not get worse,” Bgoni said.
He said the bourse was working with the Minerals Marketing Corporation of Zimbabwe and the Ministry of Mines on the commodity exchange which will trade minerals.
“We need to get final approval on the government side and start working on the rules and funding,” Bgoni said.
Last year, the VFEX signed a Memorandum of Understanding with the Dubai Gold and Commodities Exchange (DGCX) as the foreign currency-denominated bourse eyes commodities trading.
Under the agreement, the DGCX will extend technical support, knowledge and skills to VFEX, with the ultimate aim of establishing an international commodities exchange in Zimbabwe.
VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework.
The collaboration will also pave the way for possible investments by DGCX into the VFEX Commodities Exchange.
Bgoni told the AGM the ZSE board has the approved appointment of an advisor for the company to list on the bourse.
“We are working with the regulator on the listing framework. The listing of ZSE is different from other companies,” he said.
In the year ended December 31, 2021, profit after tax more than doubled to ZWL$9.3m from ZWL$4.3m in the previous year.
Revenue increased by 80% to ZWL$358m.
The increase was driven by increased equity trading turnover rose by 277% to ZWL$65.27bn from ZWL$17.3bn in 2020.
In the outlook, ZSE seeks to increase US$ revenue generation, especially on VFEX.
It seeks to continue growing the bourse, especially on REITs, Bgoni said.
