Online Reporter
Rutendo Nyeve-Zimpapers Business Hub
ZIMBABWE’s capital markets now have a combined market capitalisation of US$5,63 billion, including a nascent Real Estate Investment Trusts (REITs) segment valued at over US$100 million, and wields significant potential for further growth, the industry regulator has said.
The capital markets have witnessed robust growth on account of initiatives rolled out by the Securities and Exchange Commission of Zimbabwe (SECZim), including artificial intelligence-driven oversight, virtual asset regulations and a sustainability roadmap to attract 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 boast a combined market cap of US$5,63 billion, with funds under management (FUM) reaching ZiG98,16 billion (US$3,78 billion) and assets under custody standing at ZiG76,69 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 stands at just 12,74 percent, compared to South Africa’s 321 percent, Kenya’s 45 percent, and Botswana’s 42 percent, signalling significant room for growth.
Pension funds and insurance companies continue to drive equities trading, holding a substantial share of funds under management.
