Zimbabwe: ZSE Depository Quarterly Update

A Central Securities Depository (CSD) is an electronic register of securities such as shares, bonds, derivatives, Exchange Traded Funds. A CSD allows for ownership to be easily transferred through electronic book entry as opposed to the manual paper certificate transfers.

The ZSE was licensed to operate a CSD in July 2021 and started its operations in October 2021 with CAFCA Limited as the pioneer. Axia Corporation Limited, Amalgamated Regional Trading (ART) Holdings Limited, Truworths Limited, Seedco Limited, FBC Holdings Limited and Masimba Holdings Limited later joined the ZSE Depository in November 2021. Simbisa Brands Limited, Innscor Africa Limited and Dairibord Holdings Limited joined the ZSE Depository in 2022.

In the first quarter of 2022, the ZSE Depository onboarded two Exchange Traded Funds (ETFs); Morgan & Co Multi-sector ETF Trust and Datvest Modified Consumer Staples ETF. As at 31 March 2022, the ZSE Depository had a total of 12 issuers, two of which are Exchange Traded Funds.

Demat Ratio

Dematerialisation (Demat) is the move from physical certificates to electronic bookkeeping. The average Demat Ratio for the counters on the ZSE Depository as at 31 March 2022 was 71.6 percent.

Clearing and Settlement

The ZSE Depository clearing follows a T+3 settlement cycle.

The introduction of the depository has created a smoother interface between the Automated Trading System and the Central Securities Depository which provides a solid base for the development of new products on the market.

The depository is also playing a pivotal role in the growth of ZSE Direct as the ZSE continues to promote financial inclusion.

For more information about the ZSE, visit

Website: www.zse.co.zw

Email: [email protected]

Tel: +263 24 2886830-5

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