ZANU PF reiterates stance on Old Mutual delisting

Bruce Ndlovu, Sunday News Reporter
ZANU PF has  reiterated on its call for the delisting of Old Mutual shares from the Zimbabwe Stock Exchange (ZSE), saying distortions which are harmful to the economy had arisen from the insurance giant’s trading on multiple stock exchange counters.

The ruling party also wants the establishment of a stock exchange that will trade only in foreign currency, as allowing the Old Mutual share to be traded on multiple stock exchanges has given rise to the Old Mutual Implied Rate (OMIR).

The (OMIR) compares the prices of shares prices in rand, sterling or kwacha on the Johannesburg, Namibian, London and Malawi exchanges. The ruling party believes black market rates have been trying to keep pace with the OMIR, leading to the skyrocketing prices of basic goods.

In a statement, Zanu PF acting Secretary for Information and Publicity Cde Patrick Chinamasa said Old Mutual should only be allowed to trade on a foreign currency counter.

“Zanu- PF is totally opposed to the fungibility of the Old Mutual Shares and to this end it reaffirms its policy position that the ZSE should compulsorily de-list the Old Mutual Limited shares from trading on the ZSE. To protect the interests of the 30168 shareholders of Old Mutual Limited, Zanu- PF is recommending to its Government that it sets up a stock exchange

which will trade only in US$.

“Old Mutual Limited can then be allowed to migrate, find home and trade on such a foreign currency denominated counter in Zimbabwe. Trading on other counters has been normal and the Party is recommending that trading be resumed,” he said.

The set-up of the a foreign currency bourse should be done urgently to prevent any disruptions to the flow of investment, the statement said.

  

“Setting up a foreign exchange denominated stock exchange is an appropriate institution for raising and attracting foreign direct investment into Zimbabwe. Companies that want to invest in Zimbabwe and requiring foreign currency would then list on such a stock exchange to attract foreign direct investment in foreign currency for investment.

“The details of implementing this recommendation is left to Government including the timeframe within which this recommendation can be implemented.

It is the desire of Zanu- PF that implementation be in the shortest possible time to avoid undue disruption to inflows of investment capital,” Cde Chinamasa said.

The party also hailed Government’s move to regulate mobile money users through the Reserve Bank of Zimbabwe, saying it considered the decision to be “a master stroke which will give an invisible hand to the Government to manage and direct the country towards a common good.”