Chengetedzai in strategy to improve product offerings

Chengetedzai Depository Company (CDC) says it is working to improve its product offering to better meet customer needs through the introduction of a mobile application and US dollar settlements.

Mr Prosper Mutorogodo, the company’s chief executive, said amid the accelerated adoption of digital technology on global markets, CDC saw opportunities in expanding its digital offerings.

“The company’s focus will be on the ongoing improvement of its products, stakeholder relationships, systems, and procedures to better serve the market and compete with other market players.

“CDC Central Securities Depository (CSD) is geared to implement USD settlement in the short term as preparations are now at an advanced stage where CDC CSD will also be offering services on USD-based exchanges,” he said in CSD update for April 2023.

Mr Mutorogodo added that announcements to investors, participants, and issuers will be made in the short term to this effect.

CDC, which already offers its CSD services on the local currency-denominated Zimbabwe Stock Exchange, intends to extend its offerings to the US dollar-based Victoria Falls Stock Exchange.

For the month under review, the Zimbabwe Stock Exchange (ZSE) market capitalisation increased by 2,99 percent for April 2023, closing at $3 482 41 billion.

“The total turnover for trades on the ZSE settling through Chengetedzai CSD was $14 518 74 million for the month under review,” said Mr Mutorogodo.

CDC CSD opened 212 new accounts in April 2023, resulting in 997 accounts being opened year to date.

As a result, the cumulative number of accounts opened on the CDC CSD as of April 31, 2023 was 44,978.

Local investors accounted for 95,07 percent, and foreign investors accounted for 4,93 percent of all accounts opened on the CSD as of April 2023.

Mr Mutorogodo said individuals hold the largest number and proportion of accounts on the CSD and the other large portion of CSD accounts falls under the unclaimed shares.

“This has prompted the CSD to go on a market drive where efforts have been increased to identify those making up the unclaimed shares category so that they claim their shares,” he said.

According to the update, dematerialised securities registered on the CDC CSD accounted for 41,70 percent of the total ZSE market capitalisation and their total value was $1,452,69 billion as of April 2023.

Mr Mutorogodo said the investor types that hold the most significant value on CDC CSD were corporate, pension funds and insurance, which account for 32,21 percent, 21,67 percent and 15,62 percent respectively.

Individuals account for just 2,62 percent by value on the CDC CSD although they hold the largest number of accounts.

During the month under review, a total of 34 equities deposits were processed and this brought the cumulative number of deposits since going live to 103,795.

The average dematerialisation penetration ratio (Demat Ratio) across all counters was at 57,27 percent as of April 30, 2023.

Mr Mutorogodo said this shows a steady increase in the dematerialisation ratios from 2014 when the CDC CSD was launched.

“This is mainly through the realisation by investors of the safety of keeping shares in dematerialised form through continuous market education programs rolled out by the CSD and other capital market players,” he said.

According to the report, the cumulative number of trades processed in 2023 closed at 18,384.-herald