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CURRENT efforts to revive a vibrant local bond market, which collapsed in 2001, have gathered pace, with market watchers confident that this will add to the country’s competitiveness and appeal.
A bond market is a regulated financial system that allows the public and private sectors to raise money through issuance of debt instruments.
ZSE chairperson Dr Eve Gadzikwa said while the debt market will not solve the country’s economic problems, vibrant capital markets would attract local and foreign investment.
“Institutions have a genuine need to have a choice of capital raising options they can pursue on the exchange. The ZSE is responding to these concerns,” Dr Gadzikwa told a debt market seminar in Harare Wednesday.
With just US$400 million of foreign direct investment (FDI) coming through last year, Zimbabwe been aggressively looking for capital to fund its local inftrastructural project.
A debt market also provides investors seeking to diversify their portfolios and minimise risk, particularly from the volatile stock market, more options.
Online Reporter