Online Reporter
Nelson Gahadza
Business Reporter
CHENGETEDZAI Depository Company (CDC) says testing of the securities lending and borrowing platform has been completed and the system is now awaiting its first live transaction.
This marks a key milestone as Zimbabwe’s capital market edges closer to introducing securities lending and borrowing to broaden investment products on the Zimbabwe Stock Exchange (ZSE) and deepen liquidity in the capital market.
Securities Lending and Borrowing is a practice where an investor temporarily transfers shares or bonds to a borrower in exchange for a fee and collateral.
Lenders earn extra income on idle portfolios, while borrowers use the assets to facilitate short-selling, hedge risks, or cover settlement obligations.
CDC operations manager, Mr Takunda Muneni, said in an interview that the testing phase had been completed, with the platform now ready to process transactions once participating parties conclude the necessary contractual arrangements.
“We have completed the end-to-end testing and are now awaiting the first transaction. We have received some enquiries and interest, but the transactions are guided by a contract between the borrower, who is the stockbroker, and the lender, who is the investor,” said Mr Muneni.
Earlier this year, the Securities and Exchange Commission of Zimbabwe (SecZim) admitted the CDC Securities Lending and Borrowing platform into its regulatory sandbox to allow live testing before a full market rollout.
The testing was effective March 12, 2025, for an initial six-month period, during which the commission would monitor and guide implementation to safeguard investors.
A regulatory sandbox provides a controlled environment where innovative capital market products and financial technologies can be tested under regulatory oversight before they are introduced to the wider market.
