SECZim Hosts 7th Annual General Meeting

Witness Runodada ZimNow reporter

The Securities and Exchange Commission of Zimbabwe (SECZim) held its 7th Annual General Meeting on the 30th of June 2025, presenting stakeholders with a comprehensive review of its operations, regulatory updates, and the outlook for 2025 amidst economic volatility.

The meeting commenced with a macroeconomic overview, noting that global economic growth is expected to rise modestly to 3.3% in both 2025 and 2026. Locally, the economic growth trajectory has shown resilience, rebounding from a drought-induced dip of 2% in 2024 to a projected 6% in 2025, supported by improved agricultural productivity.

Despite this growth outlook, inflationary pressures remain a concern. Annual USD inflation surged to 14% by June 2025, while the ZWG annual inflation reached 92.5%. Currency depreciation continues to affect market confidence, with the ZiG losing over 4% of its value in 2025 after a significant 47% drop in 2024.

On the market performance front, the Zimbabwe Stock Exchange (ZSE) experienced declining activity, with turnover in USD terms falling by 29% in 2024 to USD119 million. In contrast, the Victoria Falls Stock Exchange (VFEX) recorded a notable 117% increase in turnover, signaling a shifting investment focus. Market capitalization closed 2024 at USD3.87 billion, with the ZSE accounting for two-thirds of this value.

SECZim also addressed developments in funds under management, which grew to ZWG90.35 billion, equivalent to approximately USD3.5 billion in 2024. Property investments dominated the asset allocation, making up 47% of the total. Meanwhile, offshore investments saw an uptick, rising to USD20 million in Q1 2025.

Within its regulatory scope, SECZim reported increased activity. Six new licenses were issued alongside the registration of six new Collective Investment Schemes (CIS), bringing the total to 87. However, 13 licenses were cancelled in 2024, reflecting enhanced supervisory vigilance. As part of its operations, the Commission conducted 10 onsite inspections and 7 AML/CFT checks, penalizing over 60 institutions for non-compliance.

Efforts to modernise continued with the launch of an online licensing portal and the rollout of five new directives, including enhanced financial reporting and offshore investment guidelines. Internally, the Commission underwent restructuring, reducing its number of departments and senior management positions to streamline operations.

Despite progress, SECZim acknowledged several pressing challenges. These include declining ZSE turnover, ongoing delistings, chronic understaffing—with staffing levels at only 56% as of April 2025—and continued reliance on manual systems.

Looking ahead, the Commission is prioritizing legislative reform, including proposed amendments to the Securities and Exchange Act to boost investor confidence and strengthen market regulation.

Collaboration with the Ministry of Finance and Economic Development and Investment Promotion (MoFEDIP) continues in resuscitating the government bonds secondary market and preparing for the upcoming ESAAMLG mutual evaluation in 2026.