Zimbabwe Stock Exchange Announces Measures to Boost Liquidity

26.03.24

Charity Chikara

The Zimbabwe Stock Exchange (ZSE) is set to implement a series of initiatives aimed at enhancing market liquidity, according to ZSE CEO Justin Bgoni.

In a statement accessed by Skyz Metro FM, Bgoni highlighted the potential for attracting a South African stock exchange listing, a move that could significantly boost local liquidity.

A major South African listing is seen as a “game changer” for the ZSE, which has faced liquidity challenges in recent years. Bgoni expressed confidence that such a listing is imminent and has already generated interest from several companies.

Beyond potential South African involvement, the ZSE says it is actively pursuing additional avenues to increase liquidity. This includes the introduction of new products like derivative trading and fixed income instruments, designed to attract a broader investor base and generate new sources of liquidity. Improving the ZSE’s visibility and accessibility to these investors is another key focus area.

Technological advancements are also planned to enhance the ZSE’s efficiency and competitiveness. The development of a new trading platform is underway, aiming to be more user-friendly and efficient. Additionally, a new Central Securities Depository (CSD) is being built to facilitate faster and more streamlined trade settlements. These new systems are expected to be operational by year’s end.

The ZSE’s multi-pronged approach demonstrates a proactive effort to address liquidity concerns and revitalize the Zimbabwean stock market.