eBusiness Weekly
Enacy Mapakame & Princess Ncube
HARARE – The Securities and Exchange Commission of Zimbabwe (SECZ) is pressing on with its quest to join the International Organisation of Securities Commissions (IOSCO) as it moves to open Zimbabwe’s capital markets to the world.
The ongoing process to amend the Securities and Exchange Act will open doors for Zimbabwe to be admitted into the global body of capital markets giants after previous foiled attempts to join the organisation.
IOSCO is a prestigious international body of securities regulators lead by Belgium whose members cooperate to promote high standards of securities regulation in order to maintain just, efficient and sound markets.
They also provide mutual assistance to promote the integrity of the markets by a rigorous application of the standards and by effective enforcement against offenses.
Other countries have benefited from access to wider global reach, with huge investment deals sealed while Zimbabwe missed out owing to some regulatory bottlenecks.
SECZ chief executive officer Tafadzwa Chinamo said Zimbabwe has made applications before for admittance into IOSCO but fell short of the requirements. Admittance into this global body of securities regulators will allow all stakeholders – asset managers, brokers, issuers and advisors to mingle openly with the rest of the world.
“For many years now we have stood on the edge of the international capital markets arena,” said Chinamo at a stakeholder’s forum on SECZ Act Amendments.
“On numerous occasions we have popped our head in and saw the wonders of international capital markets with monies beyond our wildest dreams flowing freely.
“Affable as we may be as an investment destination the longer we stay on the outside the sooner the rest of the world will forget all about us. We will become an afterthought,” he said.
Amendments to the SECZ Act will enhance the commission’s chances of joining IOSCO and help unlock value for the capital markets.
Another advantage of being in IOSCO is that member agencies exchange information on their respective experiences in order to promote the development of domestic markets and jointly pursue effective surveillance of international securities transactions.
“Our admittance is on the basis that we adequately regulate the Zimbabwean capital markets and that the conduct of all our regulated persons conforms to agreed best practice,” said Chinamo.
The proposed amendments will therefore among other issues improve record keeping as well as disclosure by listed companies.
Currently, some listed companies have been accused of withholding information especially from analysts and the media, information that is relevant for investor.
It will also align Zimbabwe with international best practice, which is also in line with the IOSCO requirements.
