ZSE, BSE set to partner

The Zimbabwe Stock Exchange (ZSE) and Botswana Stock Exchange (BSE) are next month set to sign a memorandum of understanding (MoU), whose aim is to explore areas of co-operation between the two entities.

BY BUSINESS REPORTER

The MoU will be signed by BSE chief executive Thapelo Tsheole and ZSE chief executive Justin Bgoni in Harare, on September 16.

“The Botswana Stock Exchange (BSE) and the Zimbabwe Stock Exchange (ZSE) are pleased to announce that they will sign an MoU as a basis for co-operation to help foster the prosperity of their financial markets, promote crossborder investments, cross-border listings and explore further opportunities for co-operation between our institutions,” part of a joint BSE and ZSE statement read.

“The MOU will be signed by the CEO of Botswana Stock Exchange, Thapelo Tsheole and the CEO of the Zimbabwe Stock Exchange, Justin Bgoni in Harare, Zimbabwe, on September 16, 2019.”

The partnership comes at a time when the ZSE market capitalisation has drastically declined in real value terms. On August 23, 2018, the ZSE market capitalisation was US$12,17 billion. However, the figure has significantly been eroded to US$2,11 billion in real terms as of yesterday.

As such, the partnership comes at a time when the equities on the BSE stands at a total market capitalisation of US$36,81 billion as of Monday.

“A joint strategy has been unveiled between the two partners in order to provide the exchanges with a framework for co-operation in areas of product and market development, promotion of cross listings, which shall include the exchanges formulating common fast-track listing requirements for companies seeking secondary listing in either market, as well as a revenue sharing agreement on the initial listing and continuing obligation fees paid by issuers,” read part of the BSE and ZSE joint statement.

“Both exchanges will work on the creation of a framework, in conjunction with the respective regulators that will make it easier, quicker and cheaper for companies to cross-list, by simplifying issues such as exchange controls, fungibility and regulatory harmonisation. Another area of focus will be information sharing on key areas in developing capital markets.”

Bgoni said they were excited about their new partnership with the BSE and the prospect of a gateway for local companies to raise hard currency on the exchange market.

“This partnership will foster the development of capital markets and contribute immensely to the economic development of Zimbabwe and Sadc. For us, it is a practical step towards the upliftment of our two economies,” he said.

Also commenting on the pending MoU, Tsheole said: “We are happy to partner with the ZSE as an extension to our mandate and contribute not only to the development of the capital markets, but also to the region as a whole. This partnership will promote the values that we stand for as members of the Sadc Committee of Stock Exchanges as well as the African Securities Exchanges Association”.

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