CURRENT efforts to revive a vibrant local bond market, which collapsed in 2001, have gathered pace, with market watchers confident that this will add to the country’s competitiveness and appeal.

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Dr Eve Gadzikwa - Pictures by Kudakwashe Hunda

Dr Eve Gadzikwa – Pictures by Kudakwashe Hunda

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A bond market is a regulated financial system that allows the public and private sectors to raise money through issuance of debt instruments.

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ZSE chairperson Dr Eve Gadzikwa said while the debt market will not solve the country’s economic problems, vibrant capital markets would attract local and foreign investment.

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“Institutions have a genuine need to have a choice of capital raising options they can pursue on the exchange. The ZSE is responding to these concerns,” Dr Gadzikwa told a debt market seminar in Harare Wednesday.

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With just US$400 million of foreign direct investment (FDI) coming through last year, Zimbabwe been aggressively looking for capital to fund its local inftrastructural project.

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A debt market also provides investors seeking to diversify their portfolios and minimise risk, particularly from the volatile stock market, more options.

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