Nqobile Bhebhe, Zimpapers Business Hub
THE Zimbabwe Stock Exchange (ZSE) and Victoria Falls Stock Exchange (VFEX) have delivered strong returns to investors this year, with pension funds, asset managers and insurance companies among those benefiting from improved capital market performance.
ZSE chief executive Mr Justin Bgoni said the performance of the two exchanges demonstrated that Zimbabwe’s capital markets were creating value for investors, challenging perceptions that the market was not functioning effectively.
Speaking at the inaugural Financial Markets Stakeholder Summit in Bulawayo, Mr Bgoni said investors had made significant returns on both platforms, reflecting the growing value of listed investments.
“So the market on average has done very well.
“People have made money this year, both on ZSE and on VFEX and its proper money.
“So I think you can see it in terms of results, especially of Pension funds, asset managers as well as insurance companies.
“So I think in terms of money, there been new money made and I think we have done a good job of seeing how much the market is worth,” he said.
His remarks come as market stakeholders intensify efforts to deepen Zimbabwe’s capital markets, broaden investment opportunities and strengthen their contribution to economic development.
Mr Bgoni said despite the positive performance recorded on the exchanges, there were still perceptions that the domestic capital market was not delivering meaningful value to investors.
“There is still some perception out there that the market is not working,” he said.
However, he argued that returns recorded by the All Share Index demonstrated the resilience and performance of the market, particularly when assessed against the prevailing inflation environment.
“In terms of the return on the all share index, these have been some of the best numbers and you must remember, nobody needs to have very high numbers when there is high inflation.
“So I think we really believe that we have done well as a capital market in terms of it,” he said.
Mr Bgoni’s comments also show the importance of macroeconomic stability in supporting capital market development, as investors seek predictable conditions in which to preserve and grow the value of their investments.
He commended Government and the Reserve Bank of Zimbabwe for measures implemented over the past two years, saying improved stability had provided a more supportive environment for financial markets.
“So I think in terms of macro context, I think the Reserve Bank and the government of Zimbabwe have done a fantastic job in the last two years, this year in particular, in terms of stability,” he said.
The inaugural Financial Markets Stakeholder Summit, jointly hosted by the ZSE and VFEX, brings together policymakers, regulators, issuers, investors and financial intermediaries to explore ways of strengthening the country’s investment ecosystem.
Held under the theme, “Shaping the Future of Zimbabwe’s Financial Markets: Connecting Capital, Innovation and Opportunity”, the two-day engagement seeks to promote collaboration, deepen market participation and unlock new sources of capital for businesses.
The discussions come at a time when Zimbabwe is seeking to mobilise domestic and international investment to support productive sectors, infrastructure development and the broader ambition of attaining upper middle-income economy status by 2030.
Stronger capital markets are expected to play an increasingly important role in mobilising long-term savings, providing businesses with alternative financing instruments and expanding investment choices for individuals and institutions.
