THE Securities and Exchange Commission of Zimbabwe (SecZim) has unveiled a new capital adequacy framework aimed at easing compliance pressures for existing players while maintaining high entry standards designed to attract well-capitalised and committed investors.
Acting chief executive Grace Berejena said the framework, which came into effect in January 2026, marked one of the most significant regulatory reforms to Zimbabwe’s securities sector in nearly a decade.
The new rules require stockbrokers, asset managers and exchanges to demonstrate stronger liquidity positions, enhanced risk management systems and credible insurance cover — measures meant to ensure market participants can absorb losses, meet settlement obligations and withstand operational shocks.
“What we have introduced this year is an amended capital adequacy framework, and the intention is to reduce capital requirements for players already operating in the market, while at the same time setting a strong entry threshold to ensure that we attract serious and committed participants,” Berejena said in an interview.
Under the framework, asset managers must now meet a minimum entry capital requirement of US$300 000.
Once licensed, ongoing prescribed liquid capital thresholds range between US$25 000 and US$150 000, a move regulators say provides relief to existing operators while promoting a more enabling business environment.
Berejena said the higher entry bar was intended to test both the financial muscle and long-term commitment of new entrants.
“You will notice that with the new framework the entry point we now have is kind of coming in on a high note given that we also want to ensure that we attract serious players on the market,” she said.
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“If someone commits themselves to pay the amount or comply with the capital requirement that we are calling for at the entry point, it demonstrates their seriousness.”
The reforms form part of SecZim’s broader strategy to balance market stability with sector growth.
Berejena said asset managers fell within the regulator’s securities market intermediaries category, a grouping that covers all licensed capital-market participants.
“The asset managers may be the ones who have the highest figure when compared with the other securities market intermediaries, which is why I have singled them out for now,” she said.
The regulatory shift comes as the asset-management sector continues to expand.
Total funds under management rose 9,59% to ZiG90,6 billion (US$3,4 billion) in the third quarter of 2025, with exposure to equities climbing to nearly 35%.
The figures include US$2,48 billion in dollar-denominated funds, underlining the sector’s growing role in Zimbabwe’s financial system.
“The moment someone joins the market, this is when we are coming in to say there is some kind of reduction because we want to promote the growth of the market and also ensure that we create an environment for our market players,” Berejena said.
She added that the new framework was designed to attract serious, long-term investors while strengthening the resilience and credibility of Zimbabwe’s capital markets.
“This is meant to promote growth and create a more enabling operating environment,” Berejena said, adding that the reforms were part of SecZim’s strategy to strengthen a sector that is strategically important to the economy.
