Online Reporter
Nelson Gahadza
Business Reporter
THE Securities and Exchange Commission of Zimbabwe says it will step up engagement with market participants and the investing public on tokenisation and other fintech innovations as digital financial products gain traction in the country’s capital markets.
The regulator said it would continue providing guidance and updates through its Regulatory Sandbox, where innovative financial technology solutions are tested under regulatory supervision before they can be considered for wider market deployment.
The approach is intended to create room for innovation while ensuring that emerging digital financial products do not undermine investor protection, market integrity and financial stability.
SECZim acting corporate finance and policy manager Mr Takawira Bote said investors and the public needed to understand tokenisation, including its potential applications, benefits and associated risks.
Speaking during a webinar on tokenisation as an emerging capital market innovation, Mr Bote said the regulator would continue monitoring developments in the sector.
“The Commission will continue to engage market participants and the public on emerging fintech developments through guidance and Sandbox updates as tokenisation and related innovations evolve within Zimbabwe’s capital market,” he said.
Tokenisation refers to the conversion of rights in a real-world asset, such as shares, bonds, property or commodities, into digital tokens recorded on a blockchain. Asset tokenisation makes global markets faster, cheaper and more accessible.
The latest cohort comprises Zimbabwe Entrepreneurship Exchange, which will test a blockchain-driven capital raising platform, Ndarama Standard (Private) Limited, an asset tokenisation platform and Questview Brokers (Private) Limited, which is testing a synthetic trading platform.
Crowdaxe Capital (Private) Limited has also been admitted to test a web-based crowdfunding platform, while Procode Platforms (Private) Limited will test a securities tokenisation platform.
Financial Securities Exchange (Private) Limited has been approved to test an asset tokenisation solution, while Colmin Resources Zimbabwe (Private) Limited will test an infrastructure tokenisation platform.
Mr Bote said the technology did not change the underlying nature of an asset, but altered how ownership could be represented, transferred and verified.
Tokenisation of securities is important because it turns traditional assets into digital tokens on a blockchain, making trading faster, cheaper, and open seven days a week.
He said tokenisation could bring several benefits to capital markets, including faster settlement, broader market access, fractional ownership and more transparent ownership records.
However, the technology also presents regulatory and investor protection risks, particularly in areas such as custody, legal enforceability, cybersecurity and potential exposure to illicit financial activity.
Mr Bote said SECZim was therefore using its Regulatory Sandbox to assess such innovations within defined parameters, allowing the regulator to understand how they operate and identify associated risks before determining an appropriate regulatory approach.
The webinar showcased two fintech solutions currently undergoing Sandbox testing.
Mr John-Paul Matenga, founder and chief executive officer of Ndarama Standard (Private) Limited, presented the company’s asset tokenisation platform, which converts real-world assets, including property and group investment projects, into digital tokens.
The platform allows investors to acquire fractional interests in assets electronically, with investment amounts starting from US$1.
Mr Matenga said the platform had recorded an average investment ticket of less than US$7 during Sandbox testing, suggesting that tokenisation could significantly lower entry barriers for retail investors.
The platform also incorporates mobile money settlement through EcoCash and OneMoney, while an on-platform secondary market allows investors to exit their positions before maturity.
Separately, Mr Munyaradzi Togarepi, founder and chief executive officer of Procode Platforms (Private) Limited, outlined a securities tokenisation model focused on VFEX-listed shares.
Under the model, the underlying shares are held in institutional custody, while tokens backed on a one-to-one basis by those shares are issued to investors.
The arrangement enables fractional ownership and is intended to provide investors with more flexible access to hard-currency equities listed on the Victoria Falls Stock Exchange (VFEX).
Mr Togarepi said the model could facilitate round-the-clock trading and instant settlement, addressing some of the structural limitations associated with conventional market trading, including restricted trading hours, minimum lot sizes and the standard T+2 settlement cycle.
The developments come as regulators globally grapple with how to accommodate blockchain-based financial products without weakening established investor and market safeguards.
