HARARE – Investment analysts have blamed low participation of individuals, households and SMEs in investment markets to lack of investment knowledge in developing nations like Zimbabwe.
The Zimbabwe Investment 101 handbook indicates that lack of financial literacy in Zimbabwe has accounted for low savings and investment rates compared to world standards.
As a result, Zimbabwe has witnessed individuals and households channelling their hard-earned money to unsafe investment vehicles such as gambling and some ponzi scheme, the latest being the Beven Capital and KWD ponzi schemes that saw Zimbabweans losing US$2 million since 2018, according to the Zimbabwe Republic Police report presented in court in August last year.
In light of this, a local investment vehicle, piggybankadvisor.com, in partnership with the Securities and Exchange Commission of Zimbabwe (SECZIM) and the Investor Protection Fund has launched a broad based financial education.
“Zimbabwe is losing a lot of financial resources due to lack of investment knowledge and this has affected economic performance as well, hence we have come up with an investment educational campaign to help Zimbabweans make informed decisions.
“The idea is to make use of technology and social media platforms to deliver educational content,” said Mr Batanai Matsika, Piggybankadvisor Head of Research.
An investment manager based in South Africa, Mr Kudakwashe Mugova, said the recent unveiling of Investment 101 Handbook by the Securities and Exchange Commission of Zimbabwe in partnership with the Investor Protection Fund provides a powerful avenue to educate the nation on safe investment options available.
Said Mugova, “Zimbabweans have for long periods fell prey to financial scams and ponzi schemes due to lack of proper financial literacy and a lot of money has been lost which otherwise could have been channelled to existing opportunities in the country’s productive sectors.
“Zimbabwe is fairly developed in terms of its capital markets which have not been fully utilised with three exchanges: Zimbabwe Stock Exchange, FINSEC and Victoria Falls Exchange.”
The existence of various stock and money markets in the country should provide Zimbabweans with efficient and safe investment opportunities. – ZBC