Chronicle Editor
Sikhulekelani Moyo, [email protected]
MORGAN & Co Made in Zimbabwe Exchange Traded Fund (ETF) has said the manufacturing sector has shown resilience during 2023, despite the challenges being faced by the sector.
The Made in Zimbabwe ETF is an actively managed fund which primarily invests in Zimbabwean manufacturing companies.
Normally, at least 80 percent of the fund will be invested in Zimbabwe-based manufacturing companies whose revenues are primarily derived from manufacturing processes while 20 percent may be invested in companies that fall outside of this scope
In a statement accompanying the company’s abridged 2023 financial results, the fund manager Mr Farai Gwaka said the ETF had a fair performance in 2023, with a growth of 691,21 percent.
He said this was in comparison to the Zimbabwe Stock Exchange All Share Index, which grew by 981,54 percent in the same year.
As a result, Mr Gwaka said the Made in Zimbabwe ETF was ranked second out of the five listed ETFs.
However, in terms of liquidity, it was ranked fourth among the ETFs, with a daily average traded volume of 27 516,24 units.
“The ETF primarily invests in Zimbabwean manufacturing companies, with a possibility of investing 20 percent in companies outside this scope.
“Despite facing challenges such as persistent power cuts, foreign currency shortages, and an increasingly informalised economy, the manufacturing sector has shown resilience,” he said.
“Looking ahead, the sector is expected to continue growing, supported by ongoing innovations, recapitalisations, and a focus on the informal sector. This is further reinforced by the extension of the multicurrency regime until 2030.”
The Made in Zimbabwe ETF was listed at the Zimbabwe Stock Exchange in June last year.
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