Investors and shareholders dealing with the Zimbabwean market will soon have a code on responsible investing to provide a framework for sustainable investment decisions.
The code on responsible investing, which is set to be crafted by the Institute for Sustainability Africa (INSAF) and stakeholders from local capital markets, will provide guidelines for potential and existing investors and shareholders on how to preserve value and generate more from their investments.
INSAF CEO, Mr Rodney Ndamba, who has been raising shareholder awareness for the past five years, said the market has warmed up to the concept aimed at promoting sustainability.
“Shareholders, even minorities should hold companies’ management accountable for investment decisions, so we will be crafting the code on responsible investment to guide towards that end. The Reserve Bank of Zimbabwe (RBZ) is supporting the move,” he said.
The National Social Security Authority (NSSA) is one organisation which has embraced principles of responsible investing through reviewing its investment decisions to increase shareholder value.
“We were very lax but in July 2015, a new board was appointed and we have come up with a new way to drive change. As a good investor in companies, NSSA should be able to attract even foreign investors to come to Zimbabwe, the Plcs, the Dangotes of this world,” said Mr Robin Vela, the NSSA Board Chairperson.
The development of the code on responsible investing is backed by a campaign to educate shareholders to exercise their right and privileges in order to protect investment value, a concept referred to as shareholder activism.