ZIMBABWE’S uncertain political environment has scuttled the Zimbabwe Stock Exchange (ZSE)’s efforts to raise US$2 million required for the bourse to join the South African JSE Securities Exchange
Industry sources say the ZSE had approached donors to raise the money for the project and they had shown an interest, only to backtrack at the eleventh hour.
“ZSE is battling to raise the capital required and they have approached a number of donors but they are not willing to avail the money under the current political environment,” the sources said. “It has become political as the donors are becoming suspicious about the political environment. It will take time for donors to weigh in with the required money.”
Former ZSE chairman Geoff Mhlanga referred all questions to chief executive officer, Emmanuel Munyukwi, who could not be reached for comment at the time of going to print.
Linking stock exchanges to the JSE has been on the priority list of stock exchange chiefs in the region.
Stock exchange chiefs fall under the Committee on Sadc Stock Exchanges.
They were unanimous in manoeuvres to link their respective stock exchanges to the JSE. The executives are scheduled to meet in September in Malawi where the issue is expected to be discussed.
Meanwhile the ZSE said the idea of setting up a small board to cater for small-to-medium-scale enterprises was still on the cards. The idea was born of a realisation that there were businesses that were unable to meet the capital requirements of the ZSE.
The Zimbabwe National Chamber of Commerce has mooted the idea of having a separate stock exchange for small businesses.