Minister Ncube to headline UK capital markets
Indaba

Finance and Economic Development Minister Professor Mthuli Ncube is next month
expected to headline the Zimbabwe Capital Markets conference in London, United
Kingdom, which seeks to showcase the opportunities and broaden the country’s capital
markets.

The conference will be hosted by Financial Markets Indaba (FMI) in conjunction with the
Zimbabwe Embassy in the United Kingdom on April 20 at the London Stock Exchange and
April 21 at Queen Elizabeth 11 Conference Centre.

Among the key topics that will be discussed is strengthening local capital markets; from
diversifying currencies to facilitating foreign investments and transitioning to an
emerging market economy as well as case studies on how companies benefited from
listing.

“The aim of the Zimbabwe Capital Markets Conference is to highlight and recognise the
important role played by capital markets in economic development and preservation and
growth of households’ savings, as well as to focus on opportunities available in different
sectors outlining the opportunities for the diaspora, international investors, companies/firms to allocate capital in different asset classes.

“The conference serves as an opportunity to inform the diaspora and demystify
complexities and myths that surround participating in financial and capital markets and
in turn encourages individuals from all walks of life to invest in the local markets
including stock exchanges,” said FMI managing director Mr Patrick Muzondo.

Capital markets in Africa are composed mainly of stock exchanges and bond markets.
Securities markets are non-negligible complements to bank financing on the continent,
with bond issuances mostly done by governments and only fewer big corporations listed
on the domestic stock exchanges.

Nevertheless, capital markets play an important role in complementing bank financing
on the continent. For the many African countries seeking to attract much more
investment, the issue of strengthening capital markets is critically important.

“Stock markets, therefore, are able to positively influence economic growth through
encouraging savings amongst individuals and providing avenues for firm financing,”
said Mr Muzondo.

The number of stock exchanges on the continent has grown from five in 1989 to 28
today, with stock markets growing continuously in the number of shares listed and the
traded volume. In Zimbabwe, the main bourse, the Zimbabwe Stock Exchange (ZSE) is
the backbone of the country’s capital markets with a history dating back as far as 1896.
It is one of the oldest and highly diversified exchanges in Africa given listings spanning
all key sectors of the economy.

The sector continues to grow and evolve although there is consensus amongst capital
markets players that the sector currently has an untapped potential contribution to
economic growth.

The recent establishment of the Victoria Falls Stock Exchange (VFEX) is one of the many
initiatives the Government is pursuing to stabilise the economy and attract foreign direct
investments.

The VFEX is a financial offshore centre that trades in foreign currency and is earmarked
for the special economic zone in Victoria Falls.

There is growing activity on the VFEX with a number of companies showing interest to
list on the foreign currency-denominated bourse to seek to take advantage of offshore
settlement options which allow investors to efficiently repatriate their dividends.

It is expected the VFEX will emerge as a competitive global platform to raise capital, and
this will transform the country’s tourism capital into an attractive Offshore Financial
Services Centre.

Financial Markets Indaba (FMI) is a series of interactive investment-related forums and
conferences convened in Johannesburg, London, Harare and virtually.

FMI is based in Johannesburg with a presence in Harare and London, and has hosted
more than 50 investor events in the last seven years as well as webinar events.

Its aim is to mobilise investment through convening diaspora, leading global
institutional investors, corporate leaders, industry experts and its team of analysts to
explore sector and market trends and identify significant investment opportunities.-The Herald