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ZSE to partner alternative exchanges to woo mining companies

By Business Reporter – Tuesday 6 August 2109

HARARE (Mining Index) – The Zimbabwe Stock Exchange (ZSE) plans to enter into multiple partnerships with alternative bourses so as to make the ZSE more attractive to the mining sector.

Speaking in an interview with Mining Index, ZSE Chief Executive Officer (CEO) Justin Bgoni said the bourse would soon amplify efforts to list more mining companies as there is low uptake from the sector.

The mining sector is a priority for us, there are just four mining companies listed on the exchange which by the way are not the biggest players in the industry. So we know there is a lot of work to be done to encourage more mining firms to list on the bourse,”

“However the sector is a bit complicated. There are mining companies at the prospecting stage which are looking to raise capital by reaching a large number of investors. This is particularly why we have been looking at working with other exchanges. One of these we can work with is the Australian Stock Exchange (ASX) as it is very easy to raise money there for exploration companies. Zimbabwean investors are not used to investing in exploration ventures,” he said.

Bgoni said one of the biggest mines in the country; Zimplats is already listed on the ASX and should also consider listing on the local bourse. He said the ZSE is already on the verge of signing a Memorandum of Understanding (MOU) with the Botswana Stock Exchange (BSE).

“The board recently approved that we could partner with the BSE, all that is left now is to conclude the negotiations and put pen to paper. This is the first of many such arrangements to follow,” he said.

Bgoni said the bourse is inundated by requests from exchanges outside the country that want to partner with ZSE as there are interesting companies that are attractive to international investors.

I know that the Johannesburg Stock Exchange (JSE) is interested in partnering with us; the London Stock Exchange (LSE) has also exhibited interest. Our capital market is also interesting as we have multiple brokers while Botswana has maybe two or three broking companies. Our trading numbers are also impressive; the total number of shares on the ZSE is higher than that of Botswana. Of course we have bourses that are ahead of us like Kenya and South Africa, but we are equally good,” he said.

Going public is key for businesses to raise capital by reaching a large number of investors, offering a window of opportunity that unlocks financial doors. We are keen on mining companies to list on the ZSE platform to raise capital. ENDS//

 

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