The anticipated demutualisation of the Zimbabwe Stock Exchange (ZSE) is likely to hit a snag due to failure by the Ministry of Finance to release funds for the transformation of the bourse into a private company.Barely a year and half after a proposed demutualisation of the ZSE was announced to the public and investors, the local market has missed the targeted deadline of June 30, 2011.
It has however emerged that the plan is failing to take off due to funding constraints.
A business analyst, Mr. Zacks Murerwa says the failure by the ZSE to demutualise will hinder economic and industrial recovery.
â€œWe are not yet aware of what is taking place and they should do something,â€ said Mr. Murerwa.
An economist, Mr. Chris Mugaga says the continued postponement of the demutualisation plan reflects lack of commitment by regulatory authorities.
â€œWe are not happy and this is now too much, something should be done,â€ Mr. Mugaga said.
In terms of the demutualisation plan, the ZSE is expected to transform its operations from a public utility to a listed stand-alone entity and unbundle trading portfolios to unlock financial returns for investors, listed firms and government.