The planned digitalisation of the Zimbabwe Stock Exchange (ZSE) has stalled due to concerns regarding a proposed loan by ZSE-listed Econet Wireless.
The digitalisation of the country’s stock exchange was revealed in April last year and Econet Wireless recently proposed to advance a “no strings attached loan” to the ZSE in order to make the platform more accessible, such as those in South Africa, Kenya, Nigeria and other African countries.
“It is time for the Zimbabwe Stock Exchange to become more accessible to ordinary people, and a proper vehicle for mobilising capital for companies,” said Econet Wireless in a statement.
Econet Wireless, which is the second largest entity listed on the exchange, said the current ZSE system is “subject to abuse and perpetuates an elitist old boys’ club” and therefore called for urgent reform.
Willia Bonyongwe, Chairperson of the Securities Commission of Zimbabwe, told NewsDay many investors are not confident in the ZSE because of corporate government issues shareholders have experienced.
Econet’s announcement it would financially assist the ZSE was made following the raising of its shareholding in ZSE-listed TN Bank to 98 percent, though TN Bank is set to be delisted.
Martin Matanda, Acting Chief Executive for the ZSE told NewsDay: “The ZSE board has not received an offer from Econet. We have only heard about the offer through the press. Until such a time when the offer has been made then we will be able to comment.”
Another ZSE source said the proposal should be rejected due to a conflict of interest.