Online Reporter
Nelson Gahadza
Business Reporter
The Zimbabwe Stock Exchange Holdings (ZSEH) says it continues to collaborate with the Bond Market Association of Zimbabwe (BMAZ) to explore initiatives aimed at revitalising the fixed income market.
On Zimbabwe’s capital market, the fixed income segment has been less prominent than other asset classes like equities and Real Estate Investment Trusts (REITs), which have shown stronger growth.
However, the BMAZ, established in April last year, was founded to create a better environment for bond market investors and issuers in order to revitalise the country’s debt market through various initiatives, including a collaboration with the Botswana Bond Market Association.
“The Victoria Falls Stock Exchange (VFEX) continues to collaborate with the Bond Market Association of Zimbabwe and continues to explore initiatives aimed at revitalising the fixed income market,” reads part of the ZSEH third quarter 2025 (Q3) newsletter.
In the quarter under review, ZSEH said the Exchange advanced several strategic initiatives focused on expanding product offerings, enhancing market participation, and building investor confidence.
A bond market is often referred to as the debt market, fixed income market, or credit market. Governments usually issue bonds to raise capital to pay debts or fund infrastructural improvements, while publicly traded companies issue bonds to finance business expansion projects or maintain ongoing operations.
The Government has, over the years, been working on modalities to issue a US$100 million bond on the VFEX as part of the domestic mobilisation of funds for infrastructure and deficit financing.
Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube in the 2025 national budget said the process was largely being slowed down by the cost of providing insurance.
According to the ZSEH’s Q3 2025 newsletter, VFEX will continue to pursue new listings while introducing innovative solutions to further strengthen the market and the Victoria Falls International Financial Services Center.
As a listed entity, ZSEH is also exploring ways with its exchanges for the inclusion of Small to Medium Enterprises (SMEs) to access finance through its platforms.
A while ago, group chief executive Mr Justin Bgoni, posting on his X account (formerly Twitter), said there is a need to harness diaspora savings as a way to grow the capital markets and debt markets.
He said there is a need to satisfy three things for the diaspora, one of which is the fear of coming back to Zimbabwe with nothing.
“This goes a long way in our history. I had a brother who came back in the 1970s from ‘Wenera’ with nothing but clothes on him. I remember the ridicule growing up,” he said.
He said another factor is patriotic fervour. “I meet Zimbabweans abroad often, and they show a deep longing for Zimbabwe to do well.
“Ethiopia did this well to build the GERD dam through diaspora bonds and donations,” said Mr Bgoni.
He highlighted that there is a need for recognition of the diaspora. “We have people that have done well overseas and are holding powerful positions.
“We need to recognise them and harness their talents and networks,” he said.
He added that the market needs to create products that focus on the diaspora that are safe and profitable.
Analysts contend that while the ZSE offers a platform for fixed income instruments, the public debt load and fiscal pressures continue to influence the bond market, adding that investor confidence remains a key factor.
