ZIMBABWE

AUTHORS

Dennis Murekachiro
Brighton Mutingwende
Norbert Mungwini
Investment Professionals of Zimbabwe

 

Zimbabwe has one of the oldest financial systems in Africa, with the Zimbabwe Stock Exchange established as long ago as 1896. There are 16 securities dealing firms, 16 asset management firms, 31 securities investment advisers, five securities custodians, and two security exchanges registered with the financial regulator.

Beginning in 2009, to counteract runaway inflation, Zimbabwean businesses were able to use foreign currencies for trade. The stock exchange has witnessed huge outflows: Equities sold by foreigners increased by 466% from USD42 million in January 2019 to USD237.83 million in February 2019, for instance. In February 2019, a new currency, the RTGS dollar was launched for trading.

The economic situation has complicated Zimbabwe’s attempts to stimulate capital markets, including the automation of the stock exchange and the launch in 2018 of the country’s first online trading platform, which allows trading by mobile phone.