Online Reporter
Nelson Gahadza
Senior Business Reporter
Government has reaffirmed its commitment to strengthening Zimbabwe’s capital markets through legislative reforms, regulatory modernisation and product innovation, saying deeper and more diversified financial markets are critical to mobilising long-term investment required to achieve Vision 2030 and the National Development Strategy 2.
Speaking at the Securities and Exchange Commission of Zimbabwe (SecZim) annual general meeting in Harare yesterday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, in remarks delivered on his behalf by director in the ministry, Mr Kudakwashe Zata, said Government would continue supporting reforms through stronger legislation, policy alignment, institutional support and investment in enabling infrastructure.
“Government remains committed to strengthening legislative reform, institutional support, policy alignment and investment in the enabling infrastructure that the emerging capital market requires,” said Prof Ncube.
He said the transformation of global financial markets through digitalisation, artificial intelligence, blockchain technology and digital finance presented Zimbabwe with an opportunity to reposition its capital markets for future growth.
The minister said while debt financing remained important, it could not, on its own, meet the country’s long-term financing requirements for infrastructure, industrialisation and economic transformation.
“A vibrant debt market, dynamic equity market, innovative investment vehicles, strong institutional investors and genuine participation by ordinary citizens and the diaspora will be key to Zimbabwe’s development,” he said.
Prof Ncube described the amendment of the Securities and Exchange Commission of Zimbabwe Act through Finance Act No. 7 of 2025 as a landmark milestone after it introduced the licensing and regulation of digital assets and digital asset service providers.
He said the legislative changes created the foundation for regulating tokenised real-world assets, blockchain-based technologies and smart contract-enabled financial instruments, while bringing digital finance under internationally recognised regulatory standards.
The minister urged the Commission to expedite the development of a comprehensive regulatory framework for digital assets to promote innovation while safeguarding investors.
He also called for a shift in regulatory supervision from traditional paper-based reviews to real-time, data-driven oversight, arguing that modern markets required faster and technology-enabled supervision.
Prof Ncube further challenged the Commission to broaden Zimbabwe’s investment product landscape by promoting sustainable finance instruments, infrastructure bonds, derivatives, real estate investment trusts (REITs), exchange-traded funds (ETFs), short-term securities and other innovative financial products capable of attracting new classes of investors.
He said the Victoria Falls Stock Exchange (VFEX) Financial Services Centre remained central to Zimbabwe’s ambition of establishing a globally competitive offshore financial hub anchored on transparency, strong governance and investor protection.
SecZim chairman Mr Dakshesh Patel said Zimbabwe was now entering a more stable macroeconomic environment, providing an opportunity to rebuild and deepen domestic capital markets.
He acknowledged that the country’s capital markets had experienced significant disruptions over the past decade but said improving economic fundamentals were creating favourable conditions for renewed growth.
“We now see the green shoots of development that are taking us towards Vision 2030. Stability has improved, inflation is at its lowest levels since independence and investment is increasing in mining and agriculture,” he said.
Mr Patel said Zimbabwe should now focus on developing a stronger debt capital market to complement the traditional equity market.
He said successful capital markets around the world were built on diversified financing structures that included project finance and debt instruments rather than relying solely on listed equities.
“We need to develop a new framework around debt capital markets. Capital market development is not only about stock exchanges but also about financing infrastructure and productive sectors through innovative instruments,” he said.
SecZim acting chief executive Mr Tichaona Mushambadope said the Commission had already begun implementing reforms aimed at modernising Zimbabwe’s capital markets and expanding available investment products.
He said trading activity improved significantly in 2025 compared to the previous year following the reduction of capital gains withholding tax from two percent to one percent, which stimulated activity on both the Zimbabwe Stock Exchange (ZSE).
Mr Mushambadope said the Commission was also addressing structural challenges arising from companies migrating from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange.
He said while the VFEX had been established primarily to attract foreign direct investment, regulators were working on measures to ensure the domestic exchange remained attractive to both retail and institutional investors.
“Our focus is modernisation of the capital markets by increasing product offerings beyond traditional equities,” he said.
“This includes tokenisation, sustainable financing, renewable energy financing and carbon credit markets, while creating an enabling regulatory environment for innovation.”
Mr Mushambadope said digital transformation would remain a strategic priority, both within the Commission’s operations and across the broader capital market ecosystem.
He said investor education would also be intensified, noting that an educated investor is a protected investor.
The Commission said it is also prioritising development of the SME Exchange, which seeks to lower listing barriers for small and medium enterprises, enabling them to raise capital, attract private equity investment and participate more actively in Zimbabwe’s formal capital markets.
Mr Mushambadope said the reforms form part of broader efforts to deepen Zimbabwe’s financial markets, widen investment opportunities and mobilise domestic and foreign capital needed to support sustained economic growth.
