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Business Reporters
THE automation of the Zimbabwe Stock Exchange is likely to see volumes of the shares traded doubling, thereby making the exchange more liquid and efficient, chief executive Mr Alban Chirume has said. It will also have a positive impact on the viability of the majority of stockbrokers as most of them have been struggling due to depressed business, Mr Chirume told a press conference yesterday.

“We are expecting volumes to go up two times on the automated trading platform and we are also working on the reduction of costs of transaction in an effort to lure other companies to come for listing,” he added

The ZSE, one of the oldest capital markets in Africa is expected to be fully automated during the first quarter of 2014 as part of efforts to modernise the bourse so that it catches up with other exchanges.

Mr Chirume said the ZSE had finalised the appointment of Central Depository and Settlement Company of Mauritius Limited as its consultant for the automated trading system project. CDSM operates the securities central depository in Mauritius and it provides ICT services to stock exchange of Mauritius.

“The request for expressions of interest for the consultancy role attracted a lot of interest from ICT professionals in Zimbabwe, South Africa, East Africa, Mauritius, South Asia and Europe,” he said

“The Zimbabwe Stock Exchange carried out a thorough selection process to identify a shortlist of five from the initial 18 applicants and ultimately three were invited to come to Harare and present their proposals,” he said

“From this process CDS Mauritius emerged as our choice of consultant to help us with the automation project. CDS has a visible footprint in the automation projects carried out elsewhere in Africa.”

The consultant is expected to review business processes of the Zimbabwe stock exchange, preparing requests for proposals, advising the ZSE on the process of vendor selection and prepare the system for implementation.

Mr Chirume also added that the automated trading system is very significant to the Zimbabwe stock exchange in terms of expected impact and is very delicate since it involves all stakeholders and the way that they conduct business.

Some analysts say the continued use of manual trading system has partly contributed to subdued market turnover. The manual trading system has also compromised the viability of stockbrokers.

Other countries who already have automated trading platforms include South Africa, Zambia, Botswana, Namibia. Mozambique, with only three listed companies is in the process of automating.