zim stock xchange 20.10.jpgThe Zimbabwe Stock Exchange (ZSE) has shelved the setting up of a secondary bourse for small to medium firms to next year owing to financial challenges.

In terms of the arrangement, ZSE had planned to establish the secondary bourse by mid this year to help emerging companies raise cheap funds.

However, it has been revealed by the ZSE Listing Committee that the initiative has been put on hold due to limited funding allocations from the Ministry of Finance.

While small to medium companies were looking forward to the establishment of a secondary market, the Director of African Investment Markets, Mr Farai Dyirakumunda said the stock-broking and investment fraternity is concerned with delays to ensure that the proposal becomes a reality.

“We were anticipating that this project will take shape this year but now it means we have to wait,” said Mr Dyirakumunda.

An economist, Mr Brains Muchemwa revealed that it is in the interest of the economy that relevant authorities should mobilise funds to set up the secondary bourse at a time when the small to medium enterprises industry is being considered important in the revival of the economy.

“This project should be a reality, indeed we need it because it will increase returns,” Mr Muchemwa said.

Plans to establish a secondary bourse on the local stock exchange were mooted five years ago but observers have expressed concern about delays towards its launch as Government forges ahead with empowerment programmes to ensure that locals acquire controlling stakes in foreign owned companies with a minimum capital thresholds of at least US$500 000.