Government demands assurance on lifting ZSE suspension – The Zimbabwe Mail

HARARE – As discussions continue on the possible re-listing of PPC and Old Mutual Zimbabwe (OMZ) on the Zimbabwe Stock Exchange (ZSE), the government is seeking assurances to avoid exchange rate fluctuations, the Zimbabwe Independent reports.

In 2020, the suspension of PPC, OMZ and Seed Co International from the ZSE was attributed to concerns about the fungibility of their shares. This led to the market using these share prices to calculate an implicit exchange rate, prompting the government to intervene.

In recent months, the government made a commitment to protect Zimbabwe Gold (ZiG) in April, raising fears about possible disruptions in the foreign exchange market.

At the first Capital Markets Conference, industry representatives expressed their frustration with the continued suspension of PPC and OMZ, pointing to the negative impact on pension funds and retirees.

ZSE CEO Justin Bgoni highlighted the challenges within the industry, including restrictive laws and high withholding taxes on capital gains, which are hindering market progress. Financial analyst Ranga Makwata stressed the need for collaboration between policymakers and capital markets to promote economic development.

Shelton Sibanda, chairman of the Association of Investment Managers of Zimbabwe, stressed the importance of attracting foreign investors and stressed that lifting the suspensions was a crucial step.

In response to government concerns, Deputy Minister of Finance, Economic Development and Investment Promotion David Mnangagwa instructed the ZSE and the Securities and Exchange Commission of Zimbabwe (SecZim) to submit a position paper to ensure that the fungibility of these shares does not exacerbate market volatility.

Bgoni reiterated ongoing efforts to find a solution and highlighted various options under consideration, including a stock exchange listing, sales in South Africa and participation in the Victoria Falls Stock Exchange.

The Capital Markets Conference, a collaboration between Zimbabwe Independent, ZSE and SecZim, served as a platform to discuss critical industry issues and promote dialogue among stakeholders.

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