Zimbabwe Overhauls Securities Laws to Attract Investment

Zimbabwe is actively modifying its securities regulations under the guidance of its Securities and Exchange Commission (SECZ) to align with global standards. This reform is an effort to draw more investors to the nation's capital market, as stated by a key government figure.

The modifications are anticipated to bolster investor trust and mitigate the negative effects of the withdrawal of foreign investment from Zimbabwe's capital market, Professor Mthuli Ncube, the Minister of Finance, Economic Development, and Investment Promotion, conveyed.

"Our aim is to bring SECZ laws up-to-date with international best practices. We strive to protect investors, ensure market integrity, and instill investor confidence through the provision of fair, efficient, and transparent market operations," Professor Ncube said during an investment conference held in China, which was a joint enterprise by the Financial Markets Indaba (FMI) and the Victoria Falls Stock Exchange (VFEX).

Professor Ncube also pointed out that the legislative update is aimed at matching rapid technological advancements, fostering the development of new financial products, and complying with international and regional standards, such as those set by the International Organization of Securities Commissions (IOSCO).

The conference also served as a platform for the FMI and VFEX, in collaboration with Zimbabwe’s Ministry of Finance, to strengthen partnerships between Zimbabwean businesses and the Chinese investment sphere. It also aimed to showcase to the Chinese community the attractive investment options available, with a particular focus on the VFEX.

The government of Zimbabwe acknowledges the vital role capital markets play in propelling economic progress within the country. Capital markets are essential for long-term funding for businesses, promoting financial participation, gathering resources for infrastructure, and providing a hedge against inflation.

In his address, Professor Ncube highlighted strategic governmental moves to improve international relations, develop investment-driven products and services, and shape a conducive business environment. These steps are geared towards enhancing investor confidence and increasing foreign direct investment (FDI).

Professor Ncube made a passionate declaration, stating, "Zimbabwe is open for business, inviting all potential investors and market participants from around the globe, including the Zimbabwean diaspora, to partake in our capital markets."

Despite the dominant presence of American and European investors, there's limited Chinese investment in Zimbabwe's capital markets. Engagement in China was targeted to amplify Chinese participation, especially in the VFEX, which operates in US dollars and provides incentives for both investors and the companies seeking investment.

investment, legislation, markets