Durable Economic Stability Boosts Confidence on the ZSE

A sustained period of macroeconomic stability throughout 2025 has helped calm volatility on the Zimbabwe Stock Exchange (ZSE), strengthening investor confidence and creating a more predictable trading environment, the exchange has said.

The improvements follow the introduction of the Zimbabwe Gold (ZiG) currency in April 2024, which has helped restore price stability and improve planning for businesses and investors. Tighter fiscal and monetary policies have reinforced these gains, driving down inflation and stabilising the exchange rate.

Zimbabwe’s annual inflation has continued to cool, sliding from levels above 106 percent in June to 19 percent in November. Authorities expect the rate to fall into single digits by late 2026 if current trends hold.

ZSE chief executive Justin Bgoni said on Friday that reduced inflationary pressure and a more stable currency had eliminated the extreme price swings previously common on the stock market.

He noted that regulators responded to the calmer environment by lowering transaction costs to stimulate participation. This included scrapping capital gains tax and reducing capital gains withholding tax to 1 percent, reforms he said had “significantly improved market efficiency.”

Looking ahead, Mr Bgoni said activity is expected to grow across both the ZSE and the Victoria Falls Stock Exchange (VFEX), supported by domestic and foreign investors, more listings—especially in mining—and the continued expansion of Real Estate Investment Trusts (REITs).

He highlighted the upcoming Zimbabwe Entrepreneurship Exchange (ZEEX), a dedicated SME board designed to bring informal businesses into the formal capital markets landscape. The platform is expected to widen funding options for smaller enterprises and deepen overall market participation.

As of November 30, the ZSE All Share Index had risen 7,99 percent for the year, closing at 234,97 points. The ZSE Top 10 Index advanced 9,49 percent over the same period to 235,67 points.

The VFEX—Zimbabwe’s US dollar-denominated bourse—recorded one of its strongest years yet. Its All Share Index surged 67,82 percent year-to-date, while total market capitalisation grew by nearly 63 percent to US$2,085 billion.

Mr Bgoni said the strong VFEX performance exceeded expectations, boosted by broad price gains and new listings such as Kavango Resources Plc and Eagle REIT, which expanded the exchange’s sectoral diversity.

Despite the record performance, foreign participation on the VFEX fell to 10,71 percent from 25,29 percent the previous year. Mr Bgoni attributed this to a sharp rise in local investor activity. Foreign involvement on the ZSE also dipped slightly, though he expects interest to pick up following reductions in trading costs.

The ZSE boss added that retail investor education and mobile trading innovations remain central to expanding participation, improving accessibility and encouraging broader engagement in the country’s capital markets.

Source-ZBC