Government intends to sell part of its shareholding in the Zimbabwe Stock Exchange (ZSE), a move that is set to bring in more capital into the company.
BY TATIRA ZWINOIRA
ZSE was demutualised in March last year resulting in the separation of ownership of the exchange in line with internationally-accepted code of corporate governance.
Stockbrokers and government have 68% and 32% respectively. Before the demutualisation, ZSE was owned by stockbrokers and run as a mutual society.
Finance minister Patrick Chinamasa told journalists yesterday as he announced the new board chaired by Caroline Sandura that government was prepared to sell a portion of its stake to the private sector.Finance minister Patrick Chinamasa
“I am prepared to shed off a portion of our stake in the ZSE to a strategic partner from the private sector,” he said.
Chinamasa said ZSE was still to show government its share certificate, which is proof of stake in the company.
Other members of the board are Alban Chirume (ZSE CEO), Bart Mswaka, Benson Gasura, Daniel Muchemwa, Kholisani Moyo and Markus de Klerk.
The new board replaces the interim one that had been appointed in 2011 to oversee the demutualisation of the society.
The interim board was chaired by Eve Gadzikwa.
Chinamasa said although there was improved stability and confidence in the non-bank financial and capital markets sector, the performance of ZSE has largely remained depressed owing to low economic activity.
Chinamasa said the new board should finalise the demutualisation exercise which included the registration of the new entity and transfer of assets and liabilities to the new entity from the existing one.
He mandated the new board to work on product development such as the introduction of a junior bourse for small-to-medium enterprises and also lower the trading costs on ZSE.
Sandura said some of the issues indicated by the outgoing chairperson were critical.
“We have a strategic plan to come up with a way forward and must move forward and do everything that is required of us in order to modernise ZSE,” she said.