Markets

ZSE to host 57th CoSSE meeting

STAFF WRITER

The Committee of the Southern African Development Community Stock Exchanges (CoSSE) meeting set for March this year in Zimbabwe seeks to promote the development of efficient and transparent securities markets within the region, the Zimbabwe Stock Exchange (ZSE) has said.

The meeting to be held together with the Stockbroker’s networking session will be hosted by the Zimbabwe Stock Exchange (ZSE) from March 11 to 13 in Victoria Falls.

CoSSE, which was established in 1997, is a collective body of the various stock exchanges in the Sadc region.

“The main objective of CoSSE is to promote the development of efficient, fair and transparent securities markets within the region,” ZSE chief executive officer Justin Bgoni said.

According to ZSE, a closed meeting for CoSSE members will be held on March 12, followed by a stockbroker’s networking session on March 13.

The stockbrokers session offers stockbrokers a networking platform to share information on their respective markets in an effort to interconnect and make it easier for cross border trading.

The meeting will be attended by Sadc brokers and is a platform for brokers to meet each other and share information about their respective markets, with the objective of encouraging cross-border trading.

The meeting is also another first step towards wholesome and effective implementation of the CoSSE Interconnectivity which aims to enable enterprises to raise the capital across all Sadc exchanges should they already be approved to raise capital on one exchange, and allow investors on one exchange to buy shares seamlessly on other exchanges within the Sadc region.

This inter-connectivity mantra is set to go a long way in increasing liquidity, as well as tackling current capital market inefficiencies.

One of the current challenges for the Sadc region is that there is lack of enough secondary trading for buyers and sellers to get fair prices and desired timing within the Sadc.

In addition, there are too few issuers and too few opportunities to invest therefore once the CoSSE Interconnectivity initiative is fully implemented, it will combine markets to get more opportunities to invest and secure more investors.

The Finance and Investment Protocol has been encouraging Sadc members to pursue the cross-market integration of their exchanges.

As a result, in the 1990s Sadc members collectively embarked on various initiatives to improve coordination and integration in the financial sector with a view to attract capital inflows and enhance domestic savings.

This culminated in the establishment of CoSSE to drive the development of a harmonised, integrated and credible regional securities/ capital market capable of mobilising capital.

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