The Zimbabwe Stock Exchange (ZSE) is set to demutualise by September this year in a move that is expected to result in the local bourse being turned into a private company owned by shareholders.
As investors are awaiting for the demutualisation of the Zimbabwe Stock ExchangeÂ to achieve attractive yields and inject funds into profitable portfolios, Government , the Securities CommissionÂ as well as the ZSE Listing board are finalisingÂ operational structuresÂ toÂ ensure that the process will solve cash-flow challenges affecting the economy.
The ZSE Chief Executive Officer Mr. Emmanuel Munyukwi confirmed that the demutualisation process will be a reality by the third quarter.
â€œEverything has been finalised but we are just ironing out some few issues so as that we will not face any problems in as much as the entire policy is concerned,â€ he said.
The ZSE is currently being run by a committee, which reports to the Ministry of Finance through the Registrar of the Stock Exchange, however economic observers say the demutualisation process will result in the bourse being turned into a profit motive business venture through the introduction of newÂ investment units that will benefit industry and households.
While the total value of shares on the ZSE is averaging US$3, 5 billion , the transformation process, is also expected to result in theÂ stock marketâ€™s capitalisation reachingÂ US$7 billion by 2012.