The transformation of the Zimbabwe Stock Exchange (ZSE) into a private limited company has been deferred to the third quarter of this year as regulatory authorities are still assessing the impact of the proposed plan in unlocking wealth to investors.
The proposed demutualisation plan, which had been due to take off at the beginning of January, has been postponed.
It has emerged that consultations have not yet been finalised to pave way for the initiative which is among other factors expected to result in the market creating a platform for a diversified trading system.
While regulatory authorities such as the Ministry of Finance are also delaying approving the demutualisation process, ZSE Chief Executive Officer, Mr Emmanuel Munyukwi said inspite of the challenges affecting the process, the local bourse will become a private company by the third quarter of this year.
â€œThere are some issues that we still need to iron out and this is delaying the entire process so we are optimistic that it can only emerge as a reality by December this year,â€ Mr Munyukwi said.
If the demutualisation programme becomes a reality, then the local market is expected to operate along the same operational system with the largest stock market in the continent the Johannesburg Securities Exchange, which also operates as a separate listed counter.
While concern is being raised on whether the Ministry of Finance as well as other regulatory bodies are committed to the demutualisation plan, it remains to be seen whether the process will eventually be launched in a move that will broaden income generating activities for the market, listed companies, investors as well as the entire economy.