ZSE opens automation bids

Business Reporter
THE Zimbabwe Stock Exchange has opened bids for vendors who want to supply hardware and software for the automation of the exchange scheduled for completion before the end of this year.In a statement, ZSE said the deadline for submission of an Expression of Interest and the confirmation of payment of fees would be September 27, 2013.

“To support this automation effort, ZSE seeks to engage vendors to bid in respect of the supply, installation, testing and future support of the requisite hardware and software for the implementation of an automated trading system. In this context, ZSE is issuing a request for proposal document for the vendors to bid,” said ZSE.

Some analysts say the continued use of manual trading system has partly contributed to subdued market turnover.
The manual trading system has also compromised the viability of stockbrokers who are getting low commission.

Economic analyst Mr Joseph Sagwati hailed the development saying the automation process was long overdue and its implementation will go a long way in instilling investor confidence.

“Now that we are coming from elections and investor confidence is still low, it requires solid initiatives to lure investors and modernisation of the bourse is one of them.

“The absence of an automated system has been a hindrance towards the promotion of capital regeneration.”
He added that the automation was going to add efficiency on the real capital creation and electronic settlements are the ones taking centre stage on the global market.

Last month ZSE chief executive Mr Alban Chirume told the Herald Business that the ZSE will be fully automated by end of the first quarter of next year as part of efforts at modernising the bourse so that it catches up with other exchanges.

“We are currently recruiting a consultant and other specialist resources to assist us in this very complex and delicate change.
“The progress will be a lot more visible in the second half of this year and for now I can only say we are eyeing first quarter of 2014 for completion.”

In the short to medium term, the ZSE will go through a period of rapid modernisation that will see it catch up and eventually overtake all the exchanges in the Sadc region except the Johannesburg Stock Exchange.

“Modernisation will be achieved through the implementation of critical automation projects and manpower development initiatives.”
“The ZSE is yet to digitalise its trading platform, some years after the idea was first mooted,” he said.