Zimbabwe’s only bourse, the Zimbabwe Stock Exchange (ZSE) could resume trading in at least 2 weeks’ time with indications that investigations by the Financial Intelligence Unit are still ongoing.

On June 28, the local equities market said it had suspended trading “until further notice” in compliance with a government directive after it was among a list of platforms accused of ‘economic sabotage’.

Apparently, the issue around ZSE’s closure revolved around Old Mutual Zimbabwe’s share price.

Old Mutual Limited is listed on the Johannesburg Stock Exchange (South Africa), London Stock Exchange, Zimbabwe Stock Exchange, Stock
Exchange of Namibia and on the Malawi Stock Exchange.

Closure of the local stock market was likely targeted at the multiple-listed Old Mutual Zimbabwe, which provided proxy exchange rates (the Old Mutual Implied Rate) implied by their prices on foreign bourses such as the London Stock Exchange.

With Zimbabwe’s ruling party last week recommending thd delisting of Old Mutual from the ZSE and a separate listing on a “foreign exchange stock market”, it appeared as if trading on the bourse would resume soon.

But anxious investors will have to wait a bit longer.

Said Finance and Economic Development Minister Mthuli Ncube at a post-mid term fiscal review meeting this morning:

“We are waiting for the conclusion of investigations led by the Financial Intelligence Unit (FIU),” said the Finance Minister.

“They should be able to conclude in the next week or two; we will then review that then decide on the modalities of the re-opening. We will follow the given recommendations.”

The Minister also updated on the proposed launch of the Victoria Falls Stock Exchange (VFEX), a foreign exchange stock market that was proposed last year.

Market watchers suspect that Old Mutual Zimbabwe will be compelled to move to the VFEX from ZSE.

It perhaps explains the close timelines for the re-opening of the ZSE and the launch of the VFEX.

“On the Victoria Falls Stock Exchange, are putting the legal framework in place. It has to go through Parliament to ensure that various laws are passed. In the next 2 to 3 weeks Parliament should deliberate over those and then after that we will be able to launch VFEX.

“I would say in 3 or 4 weeks we should be able to launch the exchange,” said Minister Ncube.