This archive report was first published on 3 August 2020.
On August 3, 2020, the Zimbabwe Stock Exchange (ZSE) resumed trading under stringent conditions, marking the end of a four-week suspension. The suspension was announced on June 28, 2020, following a directive from the government of Zimbabwe.
Finance Minister Mthuli Ncube revealed that the bourse would reopen without three dual-listed firms: Old Mutual Limited, Pretoria Portland Cement Limited, and SeedCo International Limited. The minister attributed the suspension to investigations by the Financial Intelligence Unit, which linked the movement in prices of the three dual-listed stocks to the parallel market rate of the Zimbabwe dollar.
Investors had used the stock prices as a proxy exchange rate implied by their prices on foreign bourses, such as the Johannesburg Stock Exchange and the London Stock Exchange. The reopened bourse will observe shortened trading hours.
According to Justin Bgoni, CEO of the ZSE, the bourse is engaging with the three suspended firms on re-listing under suitable rules. The government plans to transfer the three stocks to a foreign-currency-denominated exchange in Victoria Falls, which is expected to reopen by the end of 2020.
Related: Econet Accused of Black Market Currency Dealings in Zimbabwe
