‘Stability boosts prospects for key sectors’

The Stockbrokers Association of Zimbabwe (SAZ) has commended progress in macroeconomic conditions, saying this has boosted prospects for a positive performance in key productive sectors. The durable stability, the stockbrokers said, enhances the likelihood of new listings and capital raising on the Zimbabwe Stock Exchange and forex-denominated Victoria Falls Stock Exchange. Annual inflation dropped from 95,7 percent in July 2025 to 4,1 percent in January, while the exchange rate premium has narrowed to about 20 percent from over 100 percent previously.

SAZ secretary general Mr Arnold Chibvongodze said in an interview that the market was on the right track, citing progress made since 2024 in stabilising inflation and exchange rates. Stable inflation and exchange rates, he said, are critical foundations for functional, growing capital markets. After a sluggish 2024, growth is expected to reach 6,6 percent in 2025 and five percent this year, driven by a strong recovery in agriculture following better rainfall and sustained mining activities, particularly gold and lithium.

Manufacturing is regaining momentum, contributing roughly 15,3 percent gross domestic product, with major infrastructure investments in steel and power. The Government has reduced its reliance on central bank financing for budget deficits, keeping them below three percent of GDP in line with SADC targets. He said the association expects growth in mining and agriculture and companies from these sectors to drive new listings and capital-raising activities on the ZSE and VFex.

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Mr Chibvongodze said that further policy support was critical to accelerate momentum, urging the Government to consider targeted incentives. “The Government should maybe offer reduced corporate taxes, tax holidays for new listings and reduced borrowing interest rates. These measures would significantly enhance the attractiveness of listing and raising capital on the stock market,” he said.

The trend for new listings in Zimbabwe in recent years has been characterised by a significant shift away from the traditional Zimbabwe Stock Exchange (ZSE) towards the Victoria Falls Stock Exchange (VFex). Zimbabwe has a rise in specialised, alternative instruments like Real Estate Investment Trusts (Reits) and Exchange Traded Funds (ETFs. “Consistent application of these measures creates an environment suitable for the stock market. In the absence of these macroeconomic enablers, there is very little that market participants can do to grow the market,” he said.

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