ZSE bridges knowledge gap: New programme prepares companies for public listing

The Zimbabwe Stock Exchange (ZSE) has embarked on a prospective issuer training programme aimed at empowering potential issuers with the knowledge, skills, and resources needed to succeed in the financial markets in Zimbabwe.

ZSE chief executive, Mr Justin Bgoni, said at the first session of the training that the programme aims to prepare potential issuers to navigate the complexities of securities issuance and contribute to the growth and innovation of the Zimbabwean capital markets.

“Through a targeted and comprehensive approach, the programme seeks to equip potential issuers with the tools they need to succeed as issuers in Zimbabwe’s dynamic financial markets,” he said.

He said the training programme will focus on developing an understanding of securities issuance, enhancing market knowledge, fostering professional development, providing practical training, encouraging collaboration and networking, and evaluating learning outcomes.

Mr Bgoni said the birth of the programme came about during engagements, where it was noted the potential of many companies but the knowledge gap regarding the benefits and process of listing.

He said there is a need for more clarity when it comes to listing on the exchange, and this motivated the ZSE to come up with a tailor-made programme to assist companies through the listing process.

“The decision you made to apply for this programme and learn the process of listing your business on the exchange is indeed considered one of the highest achievements of entrepreneurship.

“The knowledge and skills you will learn from experienced industry players will assist you in confidently selling your story to investors,” he said.

Following the launch of the Prospective Issuers Training Programme on February 9, 2024, the ZSE has since selected 20 participants to undergo the training programme.

The selected participants will benefit from the 3-month practical sessions running from April until July 2024, where they will receive guidance, support, and mentorship from industry experts on the listing process.

According to Mr Bgoni, the issuer training programme is designed to cover a wide range of topic areas to ensure that companies receive comprehensive guidance and support throughout the securities issuance process.

The CEO of ZSE stated the diverse topics to be covered in the training programme so that companies are well catered for in the security issuance process, which included the listing process and corporate governance, among others.

Mr Bgoni said the expert advisory programme offers prospective issuers access to a host of advisors and consultants who offer expert advice on how to navigate the listing journey.

The Business Sustainability and Governance programme enables companies to develop relevant corporate governance structures that enhance decision making, thus ensuring the probability of the business continuing to operate successfully.

On knowledge transfer, Mr Bgoni said prospective issuers may lack knowledge and understanding of various aspects associated with the listing process, such as regulatory requirements, financial reporting standards, and investor relations.

He said the training programme provides an opportunity for these issuers to learn from experienced trainers who can share their expertise and insights, bridging the knowledge gap.

Other benefits are confidence-building. Mr Bgoni said navigating the capital markets can be daunting, particularly for first-time issuers.

“A training programme can boost confidence by offering reassurance, encouragement, and support. “Trainers can instill a sense of belief in prospective issuers, helping them overcome uncertainties and maintain a positive mindset throughout the listing process,” he said.

Mr Bgoni said the training programme will offer access to a network of industry professionals, advisors, and experts and can open doors to potential partnerships, collaborations, and additional resources, enhancing the prospects of success for prospective issuers.

He said the benefits of the training programme extend beyond the listing process itself. He added that trainers can become valuable long-term allies, providing ongoing support and guidance as the company transitions into a public entity.

“They can offer advice on various post-listing matters, such as corporate governance, compliance obligations, and investor relations,” said Mr Bgoni.

The first day of the training programme saw VFEX Head of Markets Robert Mubaiwa taking participants through what listing is all about and why companies list.

He also touched on the various capital-raising initiatives that can be found on the stock exchange.

Econet Financial Director Chengeto Moyo spoke about the benefits of listing, highlighting the extent to which the telecoms giant benefited from listing on the ZSE ranging from raising capital through the Initial Public Offering, debt as well as rights offers.

To close off the day’s session was stockbroker Itai Chirume of MMC Capital who took participants through the listing process.-ebusinessweekly