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ZSE to conclude demutualisation exercise

THE Zimbabwe Stock Exchange (ZSE) is set to conclude its demutualisation exercise by next month, a development which will see government assume a majority stake in the new entity.

Bernard Mpofu

The ZSE, one of the oldest exchanges on the continent, is currently controlled by stockbrokers through a mutual society.

This comes as Chinamasa extended the term of ZSE chairperson Eve Gadzikwa.

Shareholders received share certificates for the new company on March 26 2015 paving way for the restructuring of the bourse.

According to ZSE CE Alban Chirume, the new initial shareholding structure is split 32:68 in favour of government and ZSE’s stockbrokers respectively.

Gadzikwa confirmed to businessdigest that Chinamasa had extended her term to January 31 after her initial tenure ended in October.

“The minister of finance extended my contract and that of fellow board member Vimbai Nyemba to January 31 as we finalise the demutualisation of the ZSE,” Gadzikwa said.

“We are looking forward to a more robust exchange. The operating environment has not been that easy but we see reforms at the ZSE improving investor confidence and good corporate governance.”

Chronic liquidity constraints on the back of continued economic implosion saw the ZSE turnover for November reaching its lowest in six years.
The underperformance of the local bourse — a key economic performance barometer — has continued with a persistent bearish run for nine consecutive months.

ZSE CE Alban Chirume said the ZSE would change its name following completion of the demutualisation exercise.

“Currently the ZSE is undergoing the registration of the new entity as a stock exchange and the transfer of assets and liabilities from the existing entity to the new entity.

ZSE will also change its name to Zimbabwe Stock Exchange Ltd once all demutualisation processes are completed,” Chirume said.

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