Nqobile Bhebhe, Zimpapers Business Hub
RENEWED foreign investor interest is beginning to emerge on the Zimbabwe Stock Exchange (ZSE), supported by the country’s clearance of outstanding foreign dividends, although domestic investors continue to account for the bulk of trading activity.
The development points to improving confidence in the country’s capital markets, with the ability to remit dividends to foreign shareholders helping strengthen Zimbabwe’s investment appeal.
Stockbrokers Association of Zimbabwe secretary-general Mr Arnold Chibvongodze said most trading activity was still being driven by domestic market participants, but the exchange was beginning to see fresh foreign investor participation.
“I think most of the trade is coming from domestic markets and we are beginning to see a new foreign coming through,” said Mr Chibvongodze.
He was speaking during a panel discussion on “What Investors Want : Building Markets That Attract and Retain capital.”
He attributed the emerging foreign interest partly to improvements in the country’s capacity to meet its foreign dividend obligations, which had previously been a concern for international investors.
“This has come through because of what the market has done. I think as a country, we have managed to clear all our foreign dividends.
“So that has made foreigners see the market attractiveness.”
The two-day inaugural Financial Markets Stakeholder Summit is jointly hosted by the ZSE and VFEX under the theme, “Shaping the Future of Zimbabwe’s Financial Markets: Connecting Capital, Innovation and Opportunity”, and it is provides a platform for addressing these structural challenges.
