‘Capital markets must reflect Zim’s potential’

seeks to make the sector bigger and more inclusive.
In an interview last week, Mr Chinamo said there was need to leverage the country’s asset base, give value to the assets and monetise them for the growth of the economy.
He noted that the current stock market does not recognise the potential of Zimbabwe as  big a commodity               player.
“If any investors think of Zimbabwe they are likely to think in terms of mining and agriculture,” he said.
“The capital market could be relevant in raising cash for these ventures.
“However, if you look at the Zimbabwe Stock Exchange the main index is the industrial index, but are we an industrial powerhouse?
“We could be a big player in iron, diamonds, platinum and gold,” he  said.
He said a modern, well-managed exchange could attract investments in focal growth in these areas just as South Africa’s Johannesburg Stock Exchange, where big mining houses and commodity exchangers list.
A commodities exchange is a platform where various commodities like agricultural products and raw materials are traded.
The Commodities Exchange of Zimbabwe was opened last year but it is still to come into operation.)
The Indigenisation and Economic Empowerment Programme presented an excellent opportunity, said Mr Chinamo.
Under the programme, foreign companies are required to cede at least 51 percent equity to locals.
He said shares acquired under the programme could be monetised create wealth for the people, even if it meant trade in the stock among indigenous people.
“How can chiefs in Mhondoro, for example, turn the shares into money which they can use? Can those shares be used as security to get bank loans?
“The value of the shares must be tracked.
“If you have shares you should be able to get a bank loan,” he said.
If the value of assets is determined, they begin to be looked at in a different light and a country could even survive on a single commodity, like the oil-producing giants.
“Opec countries took control of their assets, gave them value and turned them into cash,” said Mr Chinamo.
Meanwhile, other observers have pointed out that the fact that the ZSE becomes jittery over such policies as  indigenisation is a reflection of the need for an alternative platform that embraces                  such policies as they benefit the black majority.