Zimbabwe Stock Exchange Reopens
Zimbabwe’s Government has finally reopened the Zimbabwe Stock Exchange (ZSE).
The Zimbabwe Stock Exchange was suspended following a ban order by the central bank after allegations of economic sabotage by authorities.
Government spokesperson Nick Mangwana last month announced the immediate suspension of trade on the exchange, as part of efforts to stop the slide of the Zimbabwe dollar. The move also included the suspension of some mobile phone-based payments.
“Government is in possession of impeccable intelligence which constitutes a prima facie case whereby the phone-based mobile money systems of Zimbabwe are conspiring, with the help of the Zimbabwe Stock Exchange, either deliberately or inadvertently, in illicit activities that are sabotaging the economy,” said Mangwana.
On Tuesday, Government announced that the Zimbabwe Stock Exchange will resume on August 3. Old Mutual , Pretoria Portland Cement and SeedCo International will remain suspended “while further consultations continue on the best way forward regarding their re-listing under suitable rules”.
In a statement, Finance Minister Mthuli Ncube said an investigation by the Financial Intelligence Unit revealed that there was a link between the movement in prices of three dual-listed stocks and the parallel market rate of the Zimbabwe dollar.
But there was no evidence that the companies, Old Mutual, Pretoria Portland Cement, and SeedCo International, were involved, Ncube said.
Morgan Nzwere, Group CEO of SeedCo, said the company had not committed any offence and would wait for regulators to conclude investigations. Old Mutual said it would issue a statement on Friday and PPC did not immediately respond to requests for comment by Reuters.
President Emmerson Mnangagwa’s ruling ZANU-PF party has recommended the de-listing of Old Mutual.
Ncube said investigations revealed that investors used the Old Mutual share price as a proxy exchange rate implied by its prices on foreign bourses such as the London Stock Exchange.