HomeBusiness DigestZSE shelves secondary listing plans

ZSE shelves secondary listing plans

Ndamu Sandu

THE Zimbabwe Stock Exchange (ZSE) has temporarily shelved a plan to set up a secondary exchange for small-to-medium enterprises (SMEs), businessdigest established this week.

Industry sources said the plan had been put on hold because companies that were supposed to benefit were failing to survive the harsh economic conditions prevailing over the past five years.

ZSE chief executive officer Emmanuel Munyukwi confirmed that the idea of a secondary listing had been suspended.

“We have put it on hold at the moment,” Munyukwi said.

The idea of secondary listing had been on the agenda of ZSE for many years. Munyukwi said the ZSE would revive the idea once the environment was conducive.

The idea of secondary listing was born of a realisation that there were businesses that were unable to meet the capital requirements of the ZSE.

A number of small-to-medium enterprises that would have benefited from the secondary market have had their plans scuttled by the harsh economic environment.

South Africa has a secondary listing for SMEs that do not meet the requirements of JSE Securities Exchange.

Munyukwi said the ZSE was still looking for US$2 million required to join the lucrative JSE Securities Exchange which has been on the cards for a long time. Linking stock exchanges to JSE has been on the priority list of stock exchange chiefs under the Committee on Sadc Stock Exchanges.

Meanwhile, Munyukwi will chair the 8th African Stock Exchange Association (Asea) conference in Nairobi next month.

Hosted by the Nairobi Stock Exchange (NSE), the November 23-26 conference coincides with NSE’s golden jubilee.

The theme of the conference is “Economic prosperity through African capital markets – funding continental infrastructure”.

Registered in Nairobi in 1993, Asea was mandated to establish an association for systematic mutual cooperation, exchange of information, materials and persons, mutual assistance and joint programmes between the members.

Asea also assists member countries to set up stock exchanges, develop financial instruments and promote stockbrokers and dealers.

Membership of Asea is open to any bourse located in Africa.

The association has been holding annual conferences each year where issues relevant to the growth of the regional securities and stock markets are addressed.

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