The Sunday News
Judith Phiri, Business Reporter
THE Securities Exchange Commission of Zimbabwe (SecZim) has said it is optimistic that more Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) listings will join the capital markets.
Capital markets provide a platform for the trading of securities such as shares in companies, Government stock, corporate bonds and municipal bonds among others, while they also enable issuers of the securities to raise money or capital.
With five ETFs listed in the country, these are baskets of different types of investments such as stocks, commodities and bonds that are pooled into a single entity, which then offers shares to investors that are subsequently traded on major stock exchanges.
REITs are regulated investment vehicles that enables the issuer to pool investors’ funds for the purpose of investing in real estate. In exchange, the investors receive units in the trust and as beneficiaries of the trust share profits from the real estate assets.
Responding to questions from the Sunday News business, SecZim chief executive officer (CEO) Mr Anymore Taruvinga said they had seen growth in the listing of both ETFs and REITs.
“We have seen growth in listings of new securities products like ETFs with three listings this year to make them five in total. There will be a REIT listing this month as Tigere Property Fund is set to become Zimbabwe’s first listed REIT following the publication of its prospectus and announcement of listing dates to the public,” said Mr Taruvinga.
SecZim approved Tigere REIT in July this year and the REIT was duly licenced in terms of the Commission’s Collective investments Schemes Act (Chapter 24:19).
In a letter dated October 21, 2022, the Listings Committee of the Zimbabwe Stock Exchange (ZSE) approved the listing of Tigere REIT on the ZSE, while the REIT will be listed under the symbol TIGZ. According to the firm’s prospectus listing is scheduled for November 23, 2022.
Mr Taruvinga added: “We also have the Karo Platinum Project US$50 million bond earmarked for listing on the Victoria Falls Stock Exchange (VFEX). We anticipate more ETFs and REITs to be joining the markets going forward.”
Meanwhile, the Commission is seeking to directly regulate listed companies in order to attain full membership of the International Organisation of Securities Commissions (IOSCO).
IOSCO is an association of organisations that regulate the world’s securities and futures markets. The international organisation, which was set up in 1983 brings together the world’s securities regulators and is a global standard setting body for capital markets.
Mr Taruvinga said: “The desire is to register issuers with SecZim and the proposed amendments to the Act are being reviewed by the Ministry of Finance and Economic Development. Membership to IOSCO results in the Commission being able to attend forums organised by IOSCO. These forums are beneficial for advancing and exchanging ideas on regulation and developments in capital markets.”
He said IOSCO membership would also open up the country’s markets to new investors from jurisdictions that currently are unable to invest in non-IOSCO compliant markets.
Mr Taruvinga said amendments to the Securities Exchange Act (Chapter 24:25) which was being reviewed by the Ministry of Finance and Economic Development would give effect to IOSCO recommendations following review of the SecZim laws and FATF (Financial Action Task Force) recommendation on regulation of virtual asset service providers.