Online Reporter
Business Reporter
The Securities and Exchange Commission of Zimbabwe (SecZim) says its focus this year is on amending the Securities Act and resuscitating the Government bonds secondary market to improve market integrity and investor confidence.
Among SecZim’s objectives, functions and powers are to control and regulate the marketing of securities and investment in securities, regulate and register securities exchanges, as well as regulate and license persons who trade or deal in or manage securities.
It is also charged with establishing and regulating central securities depositories to facilitate the marketing and transfer of securities.
SecZim chief executive officer Mr Anymore Taruvinga, in a trading update during the commission’s 7th Annual General Meeting, said the amendments to the Securities Act had since been submitted to the Ministry of Finance, Economic Development and Investment Promotion for approval.
“The commission has proposed amendments to the Act aimed at enhancing the regulatory framework for securities and improving market integrity and investor confidence,” he said.
He said the commission was also working with Treasury and industry players in reviving secondary market trading of Government bonds.
A bond market is often referred to as the debt, fixed-income, or credit market.
Governments usually issue bonds to raise funding to pay off debts or fund infrastructure projects, while publicly traded companies issue bonds to finance business expansion projects or maintain ongoing operations.
The Victoria Falls Stock Exchange (VFEX) has already established the Bond Market Association of Zimbabwe (BMAZ), which is designed to contribute to the overall growth and stability of Zimbabwe’s bond market.
Mr Taruvinga said the commission was an active participant in initiatives under the Macroeconomic Stability and Financial Sector Deepening cluster of the National Development Strategy 2 (NDS2) thematic committees.
He said the commission was also participating in the crafting of the Financial Sector Development Strategy, with its focus on capital market development.
SecZim highlighted some of its key achievements, which include the successful mobilisation of US$1 million for the acquisition of property and ZiG2,6 million for relocation expenses, received from the Treasury.
Mr Taruvinga noted that the commission issued 6 new licences and registered 6 Collective Investment Schemes, while 13 licences were cancelled in 2024.
The commission also highlighted that funds under management (FUM) grew to ZiG90,35 billion (US$3,5 billion in 2024) on the back of increased investments in property.
US dollar-denominated assets totalled US$1,87 billion, about 53 percent of total FUM, with property (47 percent), equities (32 percent) and money markets (7 percent) dominating FUM as of December 31, 2024.
“Offshore investments grew to US$20 million in Q1 2025 from US$17 million in Q4 2024,” said Mr Taruvinga.
SecZim director of finance and administration, Mrs Ferida Matambo, said the commission recorded a surplus of ZiG15 million in nominal terms and ZiG1,7 million after inflation adjustment.
The commission’s total revenue in 2024 amounted to ZiG67,93 million, a growth of 4 per cent from ZiG65,32 million in 2023.
Mrs Matambo said in terms of income contributions, annual licence fees and securities levies contributed 32 percent and 24 percent to income, respectively, and were the major boosters of revenue during the year.
She noted that fair value gain on investment property contributed 24 percent to income, and a government grant of ZiG3 million contributed 4 percent to income.
