Securities and investment firms are targeting to harness potential from the 4 million Zimbabwean diaspora community base to promote appetite towards capital market investments.
Capital markets in Zimbabwe are currently dominated by the stock market but the appetite to invest on the local bourse by both the local and foreign investors has been subdued owing to widely held views that markets are a preserve for a few with access to advisers.
Research has shown that the investing public are more aligned to the formal banking channels for investing rather than capital markets.
Within this context, the Securities Commission of Zimbabwe (SECZIM), FINSEC, Chengetedzai Depository and the Zimbabwe Stock Exchange have embarked on an initiative to educate and attract investments.
Analysts point that a well developed capital market is a catalyst for economic growth, thus can be used to attract new capital, transfer real assets in financial assets and for price discovery.
The ZSE has already come up with designs that will assist towards enhancing interface between markets and the investing public.
The overall objective is to ensure that capital markets are attractive for both the local and foreign investor, thus aiding the development of the markets into an industry that can contribute to the country’s economic resurgence.