The Sunday News
Rutendo Nyeve, Features Reporter
ZIMBABWE will be honoured to host the Committee of Sadc Stock Exchanges (COSSE) Bi-Annual meeting and African Securities Exchanges Association (ASEA) as well as the Building African Financial Markets (BAFM) workshop next month.
The high level meetings will not only help showcase Zimbabwe as a prime tourist destination, particularly Victoria Falls which will host these financial exchange delegates, but it will present an opportunity for cross pollinating ideas on how the region and continent can champion the growth of financial services, as well as how they can contribute to the continent’s economic recovery.
Zimbabwe Stock Exchange (ZSE)
The Zimbabwe Stock Exchange Limited (ZSE) will host the Committee of Sadc Stock Exchanges (COSSE) Bi-Annual meeting from 10 to 11 April and the African Securities Exchanges Association (ASEA) Building African Financial Markets (BAFM) workshop from 12 to 15 April.
COSSE was established in 1997 as a collective body of various stock exchanges in the Southern African Development Community (Sadc). The collective and cooperative body has 14 stock exchanges in the region.
The main objective of COSSE is to promote the development of efficient, fair and transparent securities markets within the region.
ASEA was established in 1993 and is the premier association of securities exchanges in Africa, which have come together with the aim of developing member exchanges, promoting capital market business and providing a platform for networking.
The association is represented by 25 exchanges serving 37 African countries, Zimbabwe included. The BAFM workshop is a capacity building programme initiated by ASEA designed to promote growth in African financial markets and an opportunity to enhance the capacity of African exchanges to compete globally. The eleventh BAFM workshop will be running under the theme, “Managing Risk in Turbulent Times”.
Responding to questions from Sunday News, Zimbabwe Stock Exchange Chief Executive Officer Mr Justin Bgoni said the seminars will feature industry experts and thought leaders across the globe who will address topical subjects such as capital markets development and re-imagining the role of African exchanges in uncertain times among others.
Southern African Development Community (Sadc).
“The event is expected to attract distinguished participants, most of whom are critical stakeholders in the development of the African capital markets and entities that have continued to champion the growth of financial services in the region.
“This 11th seminar will shed light on the capacity of African capital markets to contribute to the continent’s economic recovery,” said Mr Bgoni.
He said the ZSE is honoured to host the Building African Financial Markets seminar and participate, alongside counterparts, in identifying Africa’s economic growth paths.
“This event will increase our visibility on the continent and our issuers will be given the opportunity to showcase their products and services to other exchanges across Africa.
The Seminar is a platform for the cross-pollination of ideas with different players on the continent. Most importantly it helps showcase our beautiful country and encourage more tourism,” said Mr Bgoni.The last meeting which was the 61st Annual meeting of Sadc stock exchanges was hosted virtually on 16 November 2022 and chaired by the Chairperson of CoSSE and CEO of the Botswana Stock Exchange (BSE), Mr Thapelo Tsheole.
According to a report by the Sadc COSSE, the meeting facilitated robust discussions around the progression of the market development initiatives of the Sadc capital markets. This included the monumental project of interconnecting the Sadc Exchanges to promote regional financial integration.
“On the agenda also was the Sadc Green Bond Programme launched in March 2021, which aims to accelerate the uptake of green bonds as a tool for Sadc member countries to finance sustainable green projects,” reads the report.
The programme which is also expected to be on the agenda offers technical support in improving the frameworks necessary for issuing and listing green bonds and other related products, capacity building, and facilitation of verification of issuances, among others.
It is imperative to note that the hosting of these vital meetings comes at the backdrop of a growing US dollar denominated stock exchange in Zimbabwe.
Sadc stock exchanges have over the years resolved to concentrate on loose co-operation after clarifying the sticky issues that seemed to slow down progress towards an integrated real-time network of the region’s national exchanges.Given the different levels of development in Sadc countries, concerns have been raised over a regional stock exchange that might be dominated by the largest stock exchange in the region, the Johannesburg Stock Exchange.
Member states have therefore resolved to begin with loose co-operation and this will likely pave way for smooth transition into integration.
However, Zimbabwe’s equities market has evolved in recent years through introduction of new products and setting up of a US dollar denominated exchange, the Victoria Falls Stock Exchange (VFEX). The VFEX has over the past few months grew with 10 companies already listed.
As the Victoria Falls Stock Exchange continues to grow, another listing is set to be done on the sidelines of the BAFM workshop on 14 April.
The VFEX has potential to be a regional exchange and can increase the visibility of a company listed on it, which can help attract new customers, suppliers and partners.
It is expected to attract more regional and international companies as it potentially improves companies’ regional profile and commercial standing, strengthening prospects for both local and regional expansion. Above all, it offers foreign currency capital and a widened investor base.
The 14 Stock Exchanges in Sadc who are members of COSSE and are operating in 13 Sadc member states include the Stock Exchange of Angola (BODIVA), Botswana Stock Exchange (BSE), Stock Exchange of Mozambique (BVM), Dar es Salaam Stock Exchange (DSE), Eswatini Stock Exchange (ESE), Financial Securities Exchange (FINSEC), Johannesburg Stock Exchange (JSE), Lusaka Stock Exchange (LuSE), Seychelles Stock Exchange (MERJ), Malawi Stock Exchange (MSE), Maseru Securities Exchange (MSM), Namibian Stock Exchange (NSX), Stock Exchange of Mauritius (SEM) and the Zimbabwe Stock Exchange (ZSE). – @nyeve14.
