The Zimbabwe Stock Exchange (ZSE) has reported significant progress in its third-quarter update, including playing a pivotal role in forming the Capital Markets Association of Zimbabwe (CMAZ) earlier this year.
Since its inception, CMAZ has been involved in key strategic discussions with the Securities and Exchange Commission of Zimbabwe (SecZim), addressing important industry issues.
Topics of discussion included ZSE transaction costs like Capital Gains Withholding Tax (CGWT), Stamp Duty, tax exemptions for Real Estate Investment Trusts (REITs), and increased regulatory expenses from SecZim.
Market analyst Gregory Mashanda praised CMAZ’s involvement, highlighting its crucial role in improving regulatory frameworks and maintaining a competitive investment environment.
CMAZ is also preparing for the 2024 Capital Markets Awards in collaboration with Financial Markets Indaba and Business Weekly.
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In its report, ZSE also provided updates on its upcoming projects, including a planned reduction in its trade settlement cycle from the current T+3 (three business days after a trade) to T+2 (two business days).
The ZSE Depository, which handles securities certificates for clients, is actively working on this shift, and tests with market participants are already underway. The new settlement cycle is expected to be operational by the first quarter of 2025.
Reducing the settlement cycle will minimize risks such as counterparty and credit risks, particularly during volatile market conditions. Institutional investor Alfred Chapwanya praised the move, noting it would enhance liquidity, allowing investors quicker access to funds, which would benefit both local and international players.
This shift is expected to boost market confidence, further attracting both domestic and foreign investors, as part of ZSE’s ongoing efforts to strengthen Zimbabwe’s capital market infrastructure.
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