THE Zimbabwe Stock Exchange Holdings (ZSEH) posted a 1 270% surge in profit after tax to ZiG11,55 million for the half year to June 30, 2025, as monetary losses narrowed 99,1% on the back of ZiG stability during the period.
In the comparative 2024 period, ZSEH recorded a profit after tax of ZiG843 477.
During the period under review, the domestic currency opened at US$1:ZiG25,8267 and closed the half-year at ZiG26,9457 showing relative stability owing to hawkish monetary and fiscal policies.
Consequently, ZSEH, in its first financial report for the half year ended June 30, 2025, since its self-listing in July, reported narrower monetary losses of ZiG281 377, down from the prior year’s comparative of ZiG29,79 million.
Between January and March 2024, the highly inflationary Zimdollar was in use before adoption of the ZiG the following month on April 5.
“The market activity for the group experienced substantial growth, resulting in overall improvement performance,” ZSEH chairperson Caroline Sandura said in a statement attached to the half-year report ended June 30, 2025.
“The group’s performance for the period ended June 30, 2025 showed a significant increase in profit before tax of over 483% and an even more substantial rise in profit after tax of approximately 1 270%, demonstrating a remarkable improvement in profitability.”
However, despite the profit surge, ZSEH recorded revenue of ZiG90,62 million, down from ZiG96,53 million in the prior comparative period.
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Bourses typically generate revenue through several key streams, including transaction fees on trades, listing fees charged to companies for initial and annual listings, and market data services that sell real-time and historical trading information.
Some exchanges also earn from technology solutions, clearing and settlement services, providing infrastructure to brokers and institutional investors.
Consequently, the decline in ZSEH’s half-year revenue highlights how its earnings remain closely tied to market liquidity and exchange rate stability.
“The ZiG currency stability continued to shape the operating environment on the Zimbabwe Stock Exchange (ZSE) during the first half of 2025, contributing to a 108% increase in market securities turnover value in real terms as compared to the first half in 2024,” Sandura said.
“Furthermore, notable improvements were observed on the secondary market, including the lifting of vesting period restrictions, a reduction in the Capital Gains Withholding Tax (CGWT) from 2% to 1%, and the complete removal of Capital Gains Tax.
“The Victoria Falls Stock Exchange (VFEX) continues to exhibit substantial growth, highlighted by the successful listing of its inaugural Real Estate Investment Trust (REIT), the Eagle REIT on May 16, 2025.”
According to ZSEH, market activity on the VFEX surged considerably, registering a 26% increase in the number of trades during the review period when compared to the corresponding timeframe last year.
“This amplified interest, driven by domestic and international investors seeking USD-denominated securities, has further fuelled the exchange’s expansion,” Sandura said.
“The VFEX has solidified its strategic position as a secure haven for investors, thereby enhancing its value proposition within the financial markets.”
ZSEH recorded a significant rise in cash and cash equivalents, which climbed to ZiG19,39 million at the end of the half year, up from ZiG9,59 million as of December 31, 2024—a reflection of stronger market activity and tighter cost controls under the more stable currency regime.
Consequently, total assets were recorded at ZiG140,25 million by June, up from ZiG134,27 million at the end of 2024.
“The group maintains its strategic focus on digitalisation, evidenced by the introduction of Data Direct, a market data reporting platform,” Sandura said.
“This platform functions as a comprehensive gateway, offering market data solutions to traders, investors, and finance professionals. New listings are anticipated on the VFEX, which are expected to contribute to the full-year growth in trading values.”
