THE Securities and Exchange Commission of Zimbabwe (SecZim) has challenged the Zimbabwe Stock Exchange (ZSE) to grow the lost market share at a time asset managers have reduced their exposure to the capital market by 50% in the five past years.
The ZSE listed on its own bourse in Harare yesterday.
The call comes as SecZim says there is need to re-engage both domestic and foreign investors, demonstrating that the market had good investment products.
Speaking at the listing ceremony, SecZim chief executive officer Anymore Taruvinga said there was an urgent need to improve liquidity on the ZSE.
“Figures from our Q1 2025 market assessment indicated that our own asset managers’ exposure to listed equities decreased to 29% from slightly above 61% in 2020,” he said.
“Exposure to property has, however, grown from 32% to 48% over the same period. What can we do to claw back on this lost market share?
“The participation of retail investors has also gone down to currently about 1% from a rough estimate of between 2% and 3% pre-dollarisation.”
Added Taruvinga: “So in just five years, our asset managers have reduced their exposure to the capital market by 50%.”
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He said this did not necessarily mean that there was absence of liquidity, but there was also movement of liquidity away from the capital market.
The SecZim CEO added that the capital markets has gone through a tough phase over the past three to four years, marked by declining liquidity, loss of listings and increasing exclusion.
“Perceptions, transaction costs and limited awareness are some of the impediments that we need to deal with,” he said.
“The re-engagement is necessary because there is stiff competition for the limited liquidity at both global and domestic front.
“What can we do to grow or break on this lost market share? That’s the challenge to our listing entity today.”
Speaking at the same occasion, ZSE chairperson Caroline Sandura said the bourse was taking a bold step and ready to stand among peers in the capital markets, be accountable to the investing public, and open to the scrutiny and opportunities that come with being a listed entity.
“Allow me to take this opportunity to explain the rationale behind our decision to self-list. Firstly, unlocking shareholder value. Self-listing matters, not only for us as ZSE Holdings, but more importantly, for our shareholders,” she said.
“It unlocks access to capital, enabling us to grow, develop new products and pursue new opportunities.
“Most importantly, this will also bring liquidity to our shareholders. Secondly, it enhances our visibility, leading to new business opportunities.”
Sandura said this would boost the profile and communicate that the capital market is a viable venue for capital raising, which, in turn, attracts potential issuers.
Thirdly, she said, it strengthens ZSE’s corporate governance and the bourse will be “adhering to the listing rules and disclosures that apply to our listed entities”.
