Call for mining firms to list on ZSE

firms Bindura Nickel Corporation and Falcon Gold are listed on the Zimbabwe Stock Exchange.
Large mining firms such as Zimbabwe Platinum Holdings and Caledonia Mining Corporation (which operates the Blanket Gold Mine) are listed on the Australian Stock Exchange and Toronto Stock Exchange respectively.

Minerals Marketing Corporation of Zimbabwe board chairperson Ambassador Christopher Mutsvangwa said Zimbabwe was losing out on cash flow into the country.

“Mining companies listed in Sydney, Frankfurt, Canada and Johannesburg should be forced to list in Zimbabwe first.

“No mining company should be primarily listed on other stock exchanges outside without being listed in Zimbabwe. Australia has done it and it is working with billions of dollars flowing into that country,” he said.

Ambassador Mutsvangwa said the move would also assist in fighting the liquidity crunch.
“Everyone all over the world is chasing Zimbabwe’s diamonds so we want that money to come directly into the country pushing local deposits up,” he said.

Zimbabwe has lagged behind in the development of its capital markets, with plans to open a commodity exchange and a secondary bourse for small-to-medium enterprises being on the cards for many years.

Securities Commission of Zimbabwe chief executive officer Mr Tafadzwa Chinamo said it was possible for the Government to craft legislation compelling foreign mining companies to list on the ZSE before anywhere else.

“It is a noble idea for Government to do that, but it is not our mandate as the SCZ to come up with such laws.

“If big mining companies are listed here in Zimbabwe it is a vote of confidence in the local bourse thereby attracting more money.

“It will be a major boost for our market if that happens,” Mr Chinamo said.
He added that by listing outside the country foreign mining firms were excluding Zimbabweans from investing in those companies.

“It is not easy for Zimbabweans to buy shares of a company listed in Australia or elsewhere, so if they are listed locally, Zimbabweans can participate as well,” he said. “Yes, those companies listed outside the country want to raise money, but locally people must also take part.” He said the share price was the same for a company listed on two bourses only exchange rates would be factored in. – New Ziana.