Online Reporter
Nelson Gahadza, Zimpapers Business Hub
Foreign investor participation on the Zimbabwe Stock Exchange (ZSE) increased to 26,53 percent during the second quarter (Q2 2025), from 15,39 percent in the first quarter, reflecting the positive impact of improved economic fundamentals and growing investor confidence in the country.
According to the Zimbabwe Stock Exchange (ZSE)’s latest quarterly newsletter, trades in value terms surged 153,94 percent to ZiG743,6 million in the review period compared to ZiG292,8 million in the prior quarter.
ZSE chief executive, Mr Justin Bgoni, in an interview, said the stability in the domestic currency, ZiG, boosted investor confidence, while the positive shift in real economic fundamentals has led to increased foreign investor participation.
“Over the past months, we have witnessed stability in our currency and this has boosted investor confidence due to the positive shift in real economic fundamentals.
“The currency has been stable for a while, meaning that investors are no longer hedging. If we continue to experience currency stability and policy consistency, we should experience this positive trend going forward,” he said.
Since the country adopted the ZiG in April 2024, the currency has achieved commendable stability, evidenced by low inflation and exchange rate predictability, anchored by prudent monetary policy management and other supportive Government measures.
Despite scepticism and resistance to transacting using the local currency by some speculators, major monetary policy indicators have shown that the ZiG is gaining higher economic momentum.
Mr Bgoni noted that while the ZSE has not yet reached the level of peak foreign investor participation achieved in 2013, initiatives by the securities exchange have increased the level of foreign investor participation.
Analysts believe that the renewed interest follows the launch of the new currency, a gold, foreign currency reserve and other precious minerals-backed medium of exchange, which managed to remain largely stable, helping in value preservation.
Mrs Gladys Shumbambiri-Mutsopotsi noted that the country’s gradually improving macroeconomic stability, streamlined trading rules and bargain valuations on the bourse were attracting yield-hungry foreigners to the ZSE.
“If Harare sticks to currency liberalisation and corporate-governance reforms, non-resident inflows should stay elevated,” she said.
She highlighted that at 26,5 percent, foreign investor participation now tops its decade-high range of 8 to 18 percent, reflecting a rare vote of confidence in Zimbabwe’s policy direction.
“Strong overseas support is already deepening liquidity and could catalyse wider foreign direct investment (FDI) ,” said Mrs Shumbambiri-Mutsopotsi.
She also said investors prize Zimbabwe’s resource exposure, double-digit dividend yields and rock-bottom price/earnings (P/E) ratios.
She added that to lock in this interest, authorities must continue to work on making repatriation rules more transparent, bolster disclosure standards and showcase growth sectors beyond mining.
Full story on www.chronicle.co.zw
