Online Reporter
Nelson Gahadza
Business Reporter
Old Mutual Africa Regions chief executive Mr Clement Chinaka says Zimbabwe’s improving macroeconomic stability and continued development of financial markets will be critical to restoring investor confidence and strengthening the country’s capital markets.
Mr Chinaka said this at the listing of Old Mutual Limited’s secondary listing on the Victoria Falls Stock Exchange (VFEX), following the migration of its secondary listing from the Zimbabwe Stock Exchange (ZSE).
He said the migration reflected the group’s confidence in the growing role of the VFEX as a platform for mobilising investment, supporting capital formation and creating long-term value for investors and the broader economy.
“On behalf of Old Mutual, I would like to express our sincere appreciation to the Government of Zimbabwe for its effort to bring in the relative macro-stability that we are enjoying at the moment, and this commitment to financial market development,” he said.
Old Mutual Limited’s shares were suspended from trading on the ZSE in 2020, following regulatory changes that affected the trading of the group’s shares.
Since then, the financial services group engaged Government and key regulatory and exchange stakeholders while considering various options for resuming trading in its shares.
Mr Chinaka said the company had closely monitored the development of the VFEX before determining that the market had achieved sufficient scale and liquidity to provide a viable alternative trading platform.
“Having now developed sufficient scale and liquidity as a viable alternative trading platform to the Zimbabwe Stock Exchange, the Old Mutual Limited board has approved the migration to the Victoria Falls Exchange,” he said.
The move comes as Zimbabwe seeks to deepen its capital markets and increase the role of domestic exchanges in mobilising long-term capital.
The VFEX, established as an offshore financial market under the ZSE, has increasingly positioned itself as a platform for foreign-currency-denominated investments, with the Government seeking to attract offshore capital and provide investors with greater opportunities to participate in Zimbabwean assets.
Mr Chinaka said well-functioning capital markets were fundamental to sustainable economic growth across Africa because they connect savings with productive investment, support businesses and contribute to job creation.
“As a pan-African financial services group, we have long recognised that well-functioning capital markets are fundamental to sustainable economic growth,” he said.
He said Old Mutual’s return to the market demonstrated its commitment to developing stronger and more connected African capital markets.
“Old Mutual remains committed to playing its part in strengthening Zimbabwe’s capital markets and creating lasting value for generations to come,” Mr Chinaka said.
He added that Zimbabwe remained an important market for the group, with Old Mutual’s history in the country closely linked to its economic development.
“What is good for our communities is good for Old Mutual and, in this case, what is good for Zimbabwe is good for Old Mutual,” he said.
Mr Chinaka said the group was confident in the continued development of Zimbabwe’s capital markets and the potential that could be unlocked through collaboration between Government, regulators, exchanges and market participants.
