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Zimbabwe Stock Exchange Anticipates Growth in 2024 Amidst Market Developments

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The Zimbabwe Stock Exchange (ZSE) is poised for a promising year ahead in 2024, buoyed by projected economic improvements and enhanced market offerings on the Victoria Falls Stock Exchange (VFEX).

As the principal platform for trading equity securities, debt securities, depository receipts, and exchange-traded funds, the ZSE anticipates positive outcomes from its strategic initiatives and market developments.

Notably, the USD-denominated VFEX continues to attract interest with its advantages including the ability to raise capital in hard currency and reduced trading fees, which are expected to bolster liquidity and trading activities.

Several companies have already shifted their listings to VFEX to capitalize on these incentives, resulting in a total of 14 listings by the end of 2023.

ZSE Group CEO, Justin Bgoni, emphasized the significance of economic stability for boosting investor confidence, particularly in the context of Zimbabwe’s evolving financial landscape.

“The diversification of products on VFEX is expected to play a significant role in the exchange’s growth prospects. This increased product diversity will not only attract new investors but also provide existing ones with more opportunities to diversify their portfolios,” remarked Bgoni while reviewing the 2023 financial performance.

Looking ahead, Bgoni highlighted the nearing completion of the ZSE’s five-year strategic roadmap, with a focus on finalizing regulations for the Commodities Exchange and the upcoming introduction of Contract for Difference (CFD) products in the first half of 2024.

He acknowledged the approval of VCG Markets as the first foreign CFD-licensed player in Zimbabwe, anticipating broader participation to enhance market depth and liquidity on VFEX.

Additionally, the establishment of the Real Estate Investment Trust (REIT) Association of Zimbabwe aims to promote awareness and advocate for conducive regulatory frameworks to support REIT growth in the country.

Bgoni underscored the role of platforms like ZSE Direct and VFEX Direct in expanding retail investor participation and financial inclusion, enabling individuals to engage directly in financial markets.

Amidst ongoing digital transformation initiatives, the ZSE continues to enhance operational efficiencies and improve user experiences across its platforms. The organization’s financial performance for 2023 reflected substantial growth, with turnover increasing by 280 percent driven by listing fees and expanded trading volumes on VFEX.

Despite operating cost challenges stemming from exchange rate volatility, prudent cost management measures supported a 300 percent increase in profit.

Market indices showed contrasting performances with the ZSE All Share Index surging by 981.54 percent, reflecting local currency dynamics, while the VFEX All Share Index experienced a decline of 28.86 percent, illustrating distinct market trends within Zimbabwe’s financial landscape.

Looking forward, Bgoni expressed optimism about navigating complexities in the financial markets and leveraging strategic initiatives to sustain growth and stability across the ZSE and VFEX platforms in 2024.

Source: Sunday Mail