BY TATIRA ZWINOIRA THE Zimbabwe Stock Exchange (ZSE) says it will make a major announcement on two key counters that were suspended from the bourse in 2020, chief executive officer Justin Bgoni revealed yesterday
Financial services giant, Old Mutual Zimbabwe Limited, cement maker PPC and seed producer, Seed Co International were suspended two years ago on charges of fuelling currency turbulence.
▶️Sustainable Long-term Investment Opportunities ‘We haven't had Foreign Direct Investment (FDI) coming since around 2015/16, because of the exchange rate, people worry that they are not going to able to take their money out’ – Justin Bgoni – @ZSE_ZW CEO pic.twitter.com/kWgqyZmXzx
— Zimbabwe Independent (@Zimindependent) August 24, 2022
The companies were given an option to list on the Victoria Falls Stock Exchange (VFEX).
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But when VFEX kicked off trading in October 2020, only Seed Co opted to list. PPC and Old Mutual remain under suspension.
Because of the clout they hold in financial markets, questions continued to be asked about their future.
In an address at the Zimbabwe Investor Forum in Harare yesterday, Bgoni said there had been consultations over the counters’ future and an announcement would be made soon.
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The forum was hosted by Alpha Media Holdings’ Zimbabwe Independent in partnership with PiggyBankAdvisor, an advisory firm.
“We have been working with our regulator, the Securities Commission,” Bgoni said.
“We are hoping that in the next month or two, we will be announcing how we can resolve that. We have a plan and we will be announcing the plan, hopefully very soon, but we have a plan. There is a way forward that we have in mind. I mean, we were always embarrassed about that because it has been a long time, but we have a plan now.”
‘You need the Government in your capital markets for it to develop’ – Justin Bgoni – @ZSE_ZW CEO▶️Sustainable Long-term Investment Opportunities #ZimInvestment2022#MediaNDS1@MypiggybankC pic.twitter.com/0DQHa6Bkcm
— Zimbabwe Independent (@Zimindependent) August 24, 2022
Earlier this month, Old Mutual chief executive Samuel Matsekete said more than 30 000 shareholders were affected by the suspension.
“I think in terms of the dip in the market, a lot of that has to do with the liquidity,” Bgoni said.
“We are hoping that as things stabilise, the low liquidity will go away and proper liquidity will come back again and the market will go up again.”
He added that owing to the low levels of Zimbabwe dollar liquidity, they were now telling investors to be more careful in participating on the ZSE.