Investor education roadshows on pipeline

PLANS are underway to roll out countrywide roadshows in a fortnight to educate the public and developing the culture of investing in financial markets

The initiative is expected to dispel scepticism among citizens who have lost hope in investing in the stock market and retail products such as exchange traded funds (ETFs) and relisted investment trusts (RITS).

The past hyper-inflationary experience saw many people losing savings over the years hence the need to rebuild confidence. Finance and Economic Development Minister Professor Mthuli Ncube, who recently launched the Victoria Falls Stock Exchange (VFEX), said there was a need to restore citizens’ confidence in buying shares on listed entities among other investments.

Victoria Falls was accorded a Special Economic Zone status and is likely to attract higher investor interest through the VFEX and lead to industrial growth. This buttresses the Second Republic’s mantra “Zimbabwe is open for business” and locals need to grab the opportunity and be part of the transformation.

Prof Ncube said the Government is aware of low investment morale among citizens.

“The economy did go through a difficult time in the last 15 years in terms of hyperinflation. That is the time we had eroded savings when we moved to the United States dollar dominated multi-currency regime (2009),” said Prof Ncube.

The country re-introduced the Zim-dollar last year in June and since then it has intensified monetary reforms and domestication of local investment to capacitate the productive sector.

“We experienced deflation in that environment (dollarisation) and that didn’t support the growth of retail products.

We saw products such as unit trusts, which were very popular up to the mid-2000s being wiped and we want to go back to a point where the ordinary citizen can see the stock exchange as the place where they can invest their savings,” said Minister Ncube.

“We are going to begin investor education and we want to do a roadshow around the country to educate potential investors. We will start on the 13th of November and we will be talking about unit trusts, ETFs and RITS and what it means to invest on the stock exchange and ordinary shares.”

Prof Ncube did not give details about how the campaign will be done saying modalities were still being worked out.

The minister said investor education was also part of Government policy of financial inclusion and clearing the roadmap towards Vision 2030.

The United States dollar-denominated VFEX provides a platform for the country to attract foreign direct investment.

The platform brings industry diversification for Victoria Falls, which has over the years relied on tourism as its only mainline industrial base.

The manufacturing industry countrywide will also benefit by participating at the bourse to secure foreign currency for raw materials. —herald.cl.zw