Govt open to joint capital raising
The Government is keen to collaborate with capital market players in finding solutions to fundraising for various national projects across the country.
Capital markets the world over have the potential to help attract foreign direct investment and contribute to economic growth and development of countries.
Vibrant capital markets can turn the country into a financial hub for the region, such as is the case with global cities like hong Kong, which are known for their robust capital markets and overall financial services.
Finance, economic Development and Investment Promotion Deputy Minister David Mnangagwa said the Government desired to partner with the capital market players to fund raise for critical infrastructure projects and economic development initiatives.
The deputy minister, who was officiating at the inaugural capital markets conference in Nyanga, emphasised the need for innovative funding solutions for both businesses and Government projects.
“It is also the Government’s desire to work closely with the capital market in funding government projects spanning from energy and road infrastructure, water and sanitation, agriculture and climate financing, health and education among others.
“The Government therefore challenges the capital market institutions to come up with innovative funding solutions for both business and Government. Businesses should raise capital without relying solely on personal funds or bank loans,” he said.
The Deputy Minister also acknowledged the importance of a robust regulatory framework to ensure fair practices, investor protection, and market competition.
he stressed that transparency, trust, and accountability were crucial to attracting foreign investment and establishing Zimbabwe as a credible player in the global financial arena.
“Distinguished guests, capital markets demand regulatory frameworks that ensure fair market practices and investor protection, practices that promote competition and innovation in the financial markets and more importantly, connect domestic and international markets, facilitating global capital flows.
“Internationally, demand for transparency, trust and accountability are on the rise, and since we are part of the global capital flows, these are our responsibility too, if we are to be a relevant and credible player, in the drive to secure greater inbound investment,” he added.
Underscoring the importance of collaboration, the deputy minister called for joint efforts between the Government and capital market players to deepen and develop the market.
he expressed willingness to listen to industry concerns and work together to create an enabling environment for businesses to flourish.
During the two-day conference, Deputy Minister Mnangagwa officially launched the Capital Markets Association of Zimbabwe (CMAZ) to foster the development of the industry.
The CMAZ is expected to serve as a collective voice for participants in the capital market, including investment banks, brokerages, exchanges, asset managers, depositories and other securities market intermediaries.
It also plays an advocacy role of advancing the interests of its members, promotes best practices, engages with regulators and policymakers, and aids in the development of capital markets and promotion of financial inclusion and literacy through the introduction of new products and services.
“CMAZ is dedicated to promoting, representing, and defending the common interests of its members. By fostering a sense of collective responsibility, they aim to strengthen the capital market ecosystem to benefit all participants,” said ZSE chief executive officer Mr Justin Bgoni, who is also the association's interim chairman.