ZSE gets green light to self-list

CLOUDINE MATOLA

Government has gazetted Statutory Instrument 49 of 2025, paving the way for the Zimbabwe Stock Exchange (ZSE) to self-list on its own trading platform—a landmark regulatory shift set to modernise Zimbabwe’s capital markets.

The legal framework, issued by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, amends the Securities and Exchange (Self-Listings Rules for Exchanges) to permit local bourses to pursue self-listings under defined regulatory safeguards.

The rules empower the Securities and Exchange Commission of Zimbabwe (SECZim) to exercise oversight functions during the listing process to ensure transparency and regulatory compliance.

“It is hereby notified that the Minister of Finance, Economic Development and investment Promotion, in terms oof section 118 (6) of the SECZim Act (Chapter 24:25), has approved  the rules made by the Securities and Exchange Commission of Zimbabwe including  the Securities and Exchange (Self-listing Rules for Exchanges (Amendment Rules 2025 (No.1) and the Securities and Exchange (Self Listing rules for exchanges) Rules, 2025, published in SI 147 of 2024 are amended,” reads part of the SI.

The move follows an extraordinary general meeting held on October 9, 2024, during which shareholders of ZSE Limited unanimously approved a corporate restructuring.

Under the approved scheme, a newly formed entity, Zimbabwe Stock Exchange Holdings Limited (ZSE Holdings), will acquire 100% of ZSE Limited’s issued shares on a 1:1 exchange ratio.

Shareholders will receive one ZSE Holdings ordinary share for every ZSE Limited share held.

According to ZSE, this transaction is designed to streamline governance structures, enhance operational efficiency, and position the exchange for future growth and product diversification.

Post-transaction, ZSE Holdings will serve as the listed holding company for both the Zimbabwe Stock Exchange and the Victoria Falls Stock Exchange (VFEX), while both platforms will retain their operational independence and regulatory licenses.

“The primary purpose of incorporating ZSE Holdings is to create a listable holding entity that consolidates the fragmented governance structure of the ZSE,” the bourse said.

“This reorganisation will facilitate a seamless transfer of shareholding and open the door to innovative capital market solutions.”

While SECZim has already granted conditional approval for the restructuring, final listing remains subject to further regulatory greenlights, including tax clearance from the Zimbabwe Revenue Authority (ZIMRA) related to the Scheme of Reconstruction. ZSE officials indicated that a detailed pre-listing statement is in preparation and will be published once all necessary approvals are secured.

The ZSE’s anticipated self-listing aligns with global best practices, where exchanges such as the Johannesburg Stock Exchange (JSE), the London Stock Exchange, and the New York Stock Exchange operate under listed structures.

Analysts say the move will likely attract new investors, deepen capital market participation, and improve the exchange’s capacity to raise its own funding.

The listing is expected to unlock new avenues for innovation within Zimbabwe’s capital markets. By adopting a corporate model anchored on market-driven principles, the ZSE aims to introduce a broader range of financial instruments and investor services while maintaining regulatory independence.Under ZSE Holdings, the two licensed exchanges—ZSE and VFEX—will be better positioned to collaborate, innovate, and attract cross-border listings, particularly in the African Continental Free Trade Area (AfCFTA) context.

The restructuring of Zimbabwe’s capital markets ecosystem through the self-listing of the ZSE represents a significant step toward enhancing investor confidence, market transparency, and regional competitiveness.

For investors, regulators, and listed companies, this evolution marks a new chapter in  economic transformation agenda—one that signals openness to reform, private sector empowerment, and market-led growth.