Government to reduce stake in ZSE

HARARE – The cabinet has approved a proposed government’s reduction of its stake in the Zimbabwe Stock Exchange (ZSE) paving way for its demutualisation by March next year.

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In terms of the plan, the government is expected to reduce its shareholding from 32 percent to 16 percent whilst stockbrokers will reduce their shareholding from 68 percent to 32 percent.

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A business analyst Ignatious Chirenje says the demutualisation of the ZSE is important in increasing trading deals.

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“We anticipate for more and this is likely to boost the volumes of trade,” said Chirenje.

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Under the demutualisation structure, the remaining 50 percent will be shared among private financial institutions and individuals.

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Institutions such as banks, insurance companies, and pension funds are expected to get 20 percent whilst individuals will be allocated 30 percent.

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Market watchers say demutualisation will result in a well capitalised exchange, with more flexible decision making, and one that can respond to a fast changing and competitive market.