SecZim issues 27 licences Mr Taruvinga

Business Reporter

The Securities and Exchange Commission of Zimbabwe (SecZim) issued 27 licenses to various entities in 2022 despite the capital markets experiencing mixed fortunes.

SecZim’s mandate is to promote, develop and regulate capital markets through the formulation and implementation of appropriate rules and regulations to guide capital market operations.

Chief executive Anymore Taruvinga said the first four months of the year saw record index and turnover levels on the Zimbabwe Stock Exchange (ZSE), but this gave way to largely bearish sentiment from May 2022.

He said the Victoria Falls Stock Exchange (VFEX) saw a number of new listings, albeit this was at the expense of the ZSE, as issuers flocked to the hard currency platform.

“The listing of Nedbank Group Limited Zimbabwe Depository Receipts and the Karo Mining Holdings bond on the VFEX provided diversity to the offerings available on local exchanges,” he said while commenting in the Commission’s 2022 annual report.

By the end of 2022, the market architecture was composed of six capital market infrastructures (CMIs) and 191 securities market intermediaries (SMIs) representing a 13 percent growth from prior year.

The asset management industry’s Funds Under Management (FUM) recorded a year-on-year growth of 199,73 percent from the $534,07 billion reported as of 31 December 2021 to close the year at $1,60 trillion.

During the year under review, total unitholders increased by 8 percent from 74,843 for the prior year to close at 80,938 on 31 December 2022 while collective investments schemes funds under management grew by 805 percent to close at $51.32 billion as of 31 December 2022.

Mr Taruvinga said the commission progressed well in its digital transformation journey with some additional operational systems having been implemented including an Asset Management System and phase one (1) of the solar project.

“Plans are underway to automate the licensing application and approval process,” said Mr Taruvinga.

During the period, income grew by 268 percent in nominal terms whilst expenditure grew by 387 percent as costs tracked real inflationary developments in the economy.

The commission achieved a profit of $297 million in nominal terms but in inflation-adjusted terms, a loss of $36 million was recorded.

Mr Taruvinga said the commission welcomes the Government’s effort in spearheading the establishment of the International Financial Services Centre and looks forward to participating in its implementation.

He said the commission has also targeted strengthening its supervisory function by dedicating more resources to the licensing, super vision and surveillance department.

“Funds permitting, the commission plans to initiate work on the Capital Market Development Plan to ensure there is a coordinated national vision for the capital markets. “This will assist in guiding both the market and policymakers with regard to the capital market immediate and long-term needs and focus areas,” he said.

According to Mr Taruvinga, the year closed with the Commission having approved two delistings from the ZSE and three listings on the VFEX.

The ZSE also registered the first Real Estate Investment Trust (REIT) onto its official list during the same period.

 

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