Zimbabwe’s ruling party appears to be resorting to violence to block the main opposition party, MDC Alliance, which is headed by Nelson Chamisa, ... from campaigning and mobilising supporters in its stronghold, the rural areas. If the ruling Zanu PF fears an incursion into its heartland, how might the MDC Alliance respond?
The exchange, one of the main entry points for foreign funds looking to tap Africa’s fast-growing economies, now only offers shares, bonds and exchange-traded funds.
Chief Executive Officer Oscar Onyema said the exchange’s surveys showed there was “encouraging” demand for derivatives, which help investors to manage the amount of risk they take on.
“Our target is to really get them by 2016 at the latest,” he told Reuters late on Tuesday, adding they were setting up a clearing house, which required significant investments.
“You need to get all the major banks to buy into the idea and support the development of such an institution,” Onyema said.
He said the bourse was changing its ownership structure from a mutual company of 240 members in order to add shareholders and prepare for a possible initial public offering (IPO).
The process, known as demutualisation, will help the exchange improve its governance through opening up its ownership and could lead to new fundraising to support expansion.
“Once we have completed demutualisation, a decision will be made as to whether go straight and do an IPO or whether we will do strategic partnerships or whether we will do private equity funding,” Onyema said.
This year, shares in the oil producing-nation have taken a battering, losing about 15 percent. Foreign funds sold shares after the naira lost value in the wake of steep falls in the price of crude oil.
Next year’s presidential election has also been feeding jitters, Onyema said.
“We are just going through a cycle and I believe that given the fundamentals, how strong the listed companies are … we expect to see the market return in a strong way,” he said.
Understand Africa's tomorrow... today
We believe that Africa is poorly represented, and badly under-estimated. Beyond the vast opportunity manifest in African markets, we highlight people who make a difference; leaders turning the tide, youth driving change, and an indefatigable business community. That is what we believe will change the continent, and that is what we report on. With hard-hitting investigations, innovative analysis and deep dives into countries and sectors, The Africa Report delivers the insight you need.View subscription options