Zimbabwe’s capital markets policy is set for a review as government will next week meet local investors on possible modalities to increase the uptake of stocks, bonds and unit trusts by many people across the country.
The issue of capital markets and what they actually do, is perceived to be complex, confusing and a reserve for business people, financial experts and big corporates or institutions.
The move has therefore resulted in local capital markets being dominated by the cash rich individuals and institutional investors at the expense of those living in marginalised communities.
The Zimbabwe inaugural investor conference set for Wednesday next week will therefore provide a platform for the government, market regulators and investors to identify factors hindering the growth of these capital markets.
“Indeed it is all about what can be done to enhance the value and preserve returns to the investors at a time when all activities are mainly being linked to a few in the economy,” said conference coordinator Mr Eliah Sarayi.
Zimbabwe National Chamber of Commerce (ZNCC) president, Mr Tamuka Macheka said the need to tap investor participation at grassroots level is also important.
“While many people are not aware of the dictates of the market, including how they can improve the welfare of the people, it is high time we all focus on the rural people or businessman,” Mr Macheka said.
Some of the issues that will set the tone for the review of capital markets at the conference include the extent to which the government is creating a favourable business climate, privatisation of state owned firms through initial public offers, access to market information and investor protection as well as the impact of financial inclusion on the country’s economic development.