The Sunday News
Dumisani Nsingo, Senior Business Reporter
THE Zimbabwe Stock Exchange (ZSE) will next month hold a one-day workshop in Bulawayo in a bid to entice companies operating from the country’s second largest city to list on the bourse.
ZSE public relations officer Mr Tapiwa Bepe said the workshop to be held on 4 July was aimed at imparting companies with the potential to list on the stock exchange with the requisite information on the importance of trading on the bourse.
“The aim of the workshop is to open the ZSE to companies that have the potential to list, discuss the benefits for private companies to list on the ZSE and increase the knowledge about the requirements and obligations of listing on the ZSE. We have lined-up experts which include professional advisors, sponsoring brokers, fund managers and listed company to take delegates through the process of listing,” he said.
ZSE board member and City of Bulawayo economic development officer Mr Kholisani Moyo said the workshop would enlighten companies on the benefits of listing on the stock exchange.
“Basically there is the issue of investor education. As the second largest city and the former industrial hub of Zimbabwe we are saying to the companies operating here we want to expose you to opportunities that are there in the ZSE and how they can raise money and new capital from this exchange,” he said.
Apart from targeting corporates, the workshop also intends to capacitate members of the public on the importance of capital markets.
“It will also be targeting members of the public with a view of educating them about capital markets. One needs to understand how they can manage their investment on the stock exchange,” said Mr Moyo.
He said the workshop would also enable ZSE to announce their new products in light of the revised listing requirements, which were gazetted on 14 June.
Part of the new rules require listed firms to report financial results on a quarterly basis. Up to this point, companies had only been required to publish annual results and half-year interim reports in the Press or in electronic form, and to distribute these to all shareholders not later than three months after the end of the year or the interim period.
Over the last few years there have been calls to open a second bourse in Bulawayo.
The first stock exchange in Zimbabwe opened in Bulawayo in 1896. It was, however, only operative for about six years. Other stock exchanges were also established in Gweru and Mutare. The latter, also founded in 1896, thrived on the success of local mining industry, but with the realisation that deposits in the area were not extensive, activity declined and closed in 1924.
After World War II a new exchange was founded in Bulawayo and dealing started in 1946.
A second floor was opened in Salisbury (Harare) in December 1951 and trading between the two centres was by telephone.
They continued operating until it was decided that legislation should be enacted to govern the rights and obligations of both members of the exchange and the general investing public.
Zimbabwe has a developed capital market with an active institutional base. It has a pension fund industry, an insurance industry, and a local asset management industry supported by 19 registered stock broking firms.
@DNsingo
