Online Reporter
Rutendo Nyeve
ZIMBABWE’s capital markets have recorded a combined market capitalisation of US$5,3 billion, driven by a surge in Real Estate Investment Trusts (REITs) now exceeding US$100 million, while the Securities and Exchange Commission of Zimbabwe (SECZim) rolls out artificial intelligence driven oversight, virtual asset regulations and a sustainability roadmap aimed at attracting institutional investors.
Speaking at the recent Insurance and Pensions Symposium, SECZim director Mr Norman Maferefa said the Zimbabwe Stock Exchange (ZSE) and Victoria Falls Stock Exchange (VFEX) now have a combined market cap of US$5.63 billion, with funds under management (FUM) reaching ZWG98.16 billion (US$3.78 billion) and assets under custody standing at ZWG76.69 billion (US$2.97 billion).
“The stock market capitalisation-to-GDP ratio helps determine if a market is overvalued or undervalued. A ratio below 75 percent suggests a market is undervalued,” Mr Maferefa said.
Zimbabwe’s ratio currently stands at 12.74 percent, compared to South Africa’s 321 percent, Kenya’s 45 percent and Botswana’s 42 percent, indicating significant room for growth.
Pension funds and insurance companies continue to dominate equities trading, holding a sizeable share of funds under management.
However, Mr Maferefa noted that challenges persist, including the exit of foreign investors and the suspension of certain counters, while pointing to notable achievements such as the surge in REIT investments past US$100 million, improved settlement cycles and expanded digital access through platforms such as ZSE Direct and C Trade.
He said SECZim is amending the Securities and Exchange Act to align it with International Organisation of Securities Commissions (IOSCO) standards, with the aim of strengthening investor protection and oversight of securities issuance and corporate actions.
The Commission is also leading sustainability reporting efforts through the Sustainability Standards Panel.
Listed companies and regulated entities are expected to comply with IFRS 2 (Climate) by 2027 and IFRS 1 (Sustainability) by 2030.
“The goal of the Road Map is to influence the thinking, practice and impact assessment disclosures on Environment, Social and Governance (ESG) issues by companies,” Mr Maferefa said.
He said SECZim is adopting artificial intelligence to strengthen market surveillance, detect fraud and improve regulatory decision making.
“The adoption of AI will benefit investors through early identification of risks within the capital markets, enhanced market surveillance to detect fraud and abuse, and improved evaluation of service providers,” he said.
Virtual Assets Service Providers (VASPs) have also been placed under SECZim’s regulatory oversight, with a licensing deadline of 30 April 2026, and stakeholder consultations are ongoing.
To improve the ease of doing business, the Commission is reviewing licence fees, listing rules and investor protection clauses, and is working with the Ministry of Primary and Secondary Education and the Consumer Protection Commission on financial inclusion initiatives.
Positive momentum is also being recorded at the VFEX, where market capitalisation has reached US$2.8 billion.
Speaking at a separate listing ceremony on Friday, VFEX board chairperson Ms Florence Jambwa said:
“We are witnessing increased issuer interest, deeper investor participation and a strengthening of our position as a credible, US dollar-denominated capital raising platform in the region.”
She said retail investor participation through VFEX Direct now exceeds 7 800 active accounts, with average daily turnover above US$350 000.
Against this backdrop, Econet InfraCo on 27 March 2026 became the 19th counter on the VFEX, ring fencing high quality infrastructure assets to offer investors long term, income generating opportunities.
The listing, the second on VFEX this year, further diversifies the exchange’s product base and reinforces Zimbabwe’s ambition to position itself as a competitive regional financial hub.
