Invest in money markets to grow wealth- ZSE
Nqobile Bhebhe, Senior Business Reporter
THE Zimbabwe Stock Exchange (ZSE) has encouraged individuals and businesses to grow their wealth and contribute to economic development through investing in money markets.
The solid performance of the ZSE and the fast-growing Victoria Falls Stock Exchange (VFEX), has offered a positive reference regarding the reliability of domestic stock markets investments in creating a secure financial future and boosting the economy.
By investing in money markets, individuals are able to plan their short and long-term financial usages, experts say.
For instance, on 31 December, VFEX-listed Caledonia Mining Corporation declared a US$0,14 quarterly dividend to its shareholders.
ZSE chief executive officer, Mr Justin Bgoni, has encouraged locals to grab stock market investments as a way of growing wealth saying one of the avenues is through the ZSE Direct platform.
ZSE Direct was launched in September 2020 and allows individuals in the country to participate on the ZSE through the virtual platform, which cements financial inclusion.
Following the launch of the ZSE Direct, the local bourse is working with different institutions to increase access to the platform by retail investors.
Added to that, the VFEX last year launched an online trading platform designed for retail investors, a development said to be a convenient way to buy and sell securities.
“Don’t let fear hold you back from pursuing your financial goals. Take control of your financial future and start investing today,” said Mr Bgoni.
“In 2021, the ZSE implemented a new electronic trading system, ZSE Direct, making it easier for investors to buy and sell shares online.
“Investing in the stock market is a way to grow your wealth and create a secure financial future for yourself and your loved ones,” he wrote on his official Twitter account.
In September, VFEX said since its launch in 2020, trading has mainly been dominated by institutional investors, and that from feedback received from stakeholders, more retail investors were keen to participate on the VFEX.
VFEX is a subsidiary of the Zimbabwe Stock Exchange that was launched in 2020 as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and helping companies raise capital in foreign currency.
Contacted for comment, development economist Dr Prosper Chitambara said investing in money markets is a noble idea as it has implications for the national economy.
“A stock market is an important capital mobilisation institution, so buying shares definitely has benefits to the person who is investing or buying,” he said.
“It also benefits the listed company and the economy. For individuals, although it’s a long-term but a good investment opportunity, through shares one can earn a dividend if the company declares or even benefit through capital gains and increases in share price when one sells the shares.”
Dr Chitambara said participation on the stock markets also benefits listed firms in that if they are performing well, they are able to contribute to the economy through several channels such as employment creation, revenue generation and paying taxes to the fiscus.
Bulawayo-based economic commentator and former banker, Mr Morris Mpala, also concurred saying there are immense benefits in investing on capital markets.
“By and large stock markets are meant for individuals to make money and are critical for investors to look at past performance of listed firms they plan to invest in,” he said.
“Benefits include preserving capital and earning dividends and also having the ability of decision making as a shareholder at Annual General Meetings.”