Online Reporter
Nelson Gahadza
Zimpapers Business Hub
The Zimbabwe Stock Exchange Holdings (ZSEH) says it has instituted several measures to address potential conflicts of interest following its recent self-listing and is now introducing the ZSE as a business to the market.
This comes after ZSE Holdings, which owns the country’s oldest and major securities market, listed on the ZSE Main Board on July 11.
However, in Zimbabwe, self-listing is provided for by Statutory Instrument 147 of 2024, which allows self-listing under specific regulations and the oversight of the Securities and Exchange Commission of Zimbabwe (SECZim).
The existence of an independent regulatory body serves to mitigate potential conflicts.
ZSEH chief executive officer Mr Justin Bgoni said the company was putting safeguards against potential conflict of interest through several measures.
“We are responsible for regulating listed companies, so obviously, we could not regulate ourselves. Our regulator, SecZim, is our regulator for that purpose.
“Companies will send the documents to us, and they are the same documents we will submit to the Securities and Exchange Commission, and SecZim is the one that approves those documents,” he said.
Mr Bgoni said the listed company would be publishing its half-year financials shortly, and it intended to hold an analyst briefing.
“We will explain to people how we make money and why we think we are a sustainable business, which people should consider investing in,” he said.
Mr Bgoni noted that the self-listing journey was part of the ZSE’s five-year strategy and that it had to get listed this year for several reasons.
“First, when you are asking other people to list, you have to get listed yourself. People wonder why you are not listed, and the listing is also beneficial to our shareholders.
“Now we can ask them for help; they can place a real value on it, and they also can sell where they want to,” he said.
He added that the listing allows the ZSEH to get more shareholders who can come in and share the company’s vision.
“Also, being listed comes with increased corporate governance, and we felt it was important that the exchanges should be known for good corporate governance, which also improves visibility,” said Mr Bgoni.
The ZSEH boss said the ZSE remained the country’s biggest securities exchange; hence, it made sense to list on the bourse where the biggest companies in the economy were also listed.
“The ZSE has been introducing new products of late; hence, it was also important to support it as well by listing it,” he said.
Mr Bgoni said this year, ZSE expected between two and four new listings, most likely on the VFEX, its US dollar-based subsidiary, in the form of companies and real estate investment trusts (REITs).
“Our growth plan is that we now expect our exchanges to grow differently now, and the ZSE will be more technologically focused.
“VFEX is going to do more exotic products, and it will start doing crypto exchanges and make more effort in terms of growing mining and other export-related industries,” he said.
Mr Bgoni said a strong capital market was crucial for the country’s economic growth, while the capital market played a vital role in facilitating access to capital for companies, which could then be used to drive economic growth.
He said the Eagle Real Estate Investment Trust listed on VFEX was able to raise money to build a hospital, mall, and hotel, demonstrating the impact that the capital market can have on the economy.
Mr Bgoni praised the current regulatory environment, saying that it has improved significantly, and noted that the government and regulator are supportive of the capital market and are working to create a conducive environment for growth.
Online Reporter