Programme launched to reform and strengthen Zimbabwe’s capital markets
The initiative will identify challenges and strengthen capital markets by improving regulation and compliance with international standards
HARARE, 18 JUNE 2019: The Securities and Exchange Commission of Zimbabwe (SEC Zimbabwe) has joined the UK-funded Financial Sector Deepening Africa’s (FSD Africa) flagship Africa Regulator Support Programme. The programme is part of a continent-wide initiative designed to support capital market regulators to attain international standards.
Here, the programme will support an institutional capacity assessment to review SEC Zimbabwe’s operations and identify areas that require strengthening. It will also fund the development of a Capital Markets Masterplan that will outline the actions needed to develop the capital market sector and broaden Zimbabwe’s long-term financing base. In addition, SEC Zimbabwe will engage in knowledge-sharing with capital market regulators across Africa.
The two-and-a-half-year programme provides funding to build the capacity of capital market regulators across the continent, provide world-class technical assistance, encourage closer collaboration among regulators and conduct research to support the development of new policies and regulations.
Annabel Gerry, Head of Office for the UK Department for International Development (DFID) in Zimbabwe and South Africa commented:“DFID is both excited and proud to be a part of this initiative that will assist in strengthening the SEC’s capacity to regulate the capital market. This will help unlock a key source of long-term financing for businesses that can drive robust and inclusive growth in Zimbabwe.”
Mr. Tafadzwa Chinamo, Chief Executive Officer of the Securities and Exchange Commission, Zimbabwe said: “The assistance from FSD Africa in kickstarting a ground-up rebuilding of Zimbabwe’s Capital and Securities industry could not have come at a better time. We have before Cabinet amendments to the Securities Act which seek to remodel the capital market in line with international best practice. Such is the enormity of the amendments that implementing the regulatory changes implied by the proposed new laws will embrace a wider stakeholder base. It is for this reason the Commission is excited by the assistance from FSD Africa and welcome the prospect of building our capital markets from a position of knowledge and inclusivity.”
Mark Napier, Director, FSD Africa said: “This is an exciting moment for Zimbabwe. We are delighted to partner with SEC Zimbabwe to create the Institutional Capacity Assessment and Capital Markets Masterplan. This work will broaden the long-term financing base of economy by addressing key challenges and enhancing governance through institutional reforms.”
Rufaro Maunze, Regional Lead, Fragility & Conflict States and Zimbabwe Country Representative FSD Africa said: “We are delighted to be working with SEC Zimbabwe to develop their capital market sector. This work will help Zimbabwean households and entrepreneurs access innovative and affordable finance so that SMEs can thrive, and households can move out of poverty.”
SEC Zimbabwe is the eighth capital market regulator to join the programme, which began in September 2018. FSD Africa is implementing the programme in Nigeria, Ghana, Uganda,Kenya,Mozambique, Rwanda and Zambia, as well as in the West African Monetary Union’s Regional Council for Public Savings and Financial Markets (CREPMF).