Foreign inflows on the Zimbabwe Stock Exchange rose by close to 40% in 2013, with more coming in the second half. According to an article in the Zimbabwe Herald newspaper, over the year foreign investors bought $291.0m worth of shares and sold $194.7m, compared to $211.6m of purchases and $152.8m of sales in 2012.
The government-owned newspaper reports that August 2013, immediately after the 31 July elections, saw an inflow of $33.3m. The main driver of foreign investment is the dollarization introduced by Finance Minister Patrick Chinamasa in early 2009.
According to data from the ZSE, a total of $485.8m worth of shares were traded in 2013 (more in the second half), up 8.4% on 2012 and also more than 2011 and 2010. However, the number of trades slipped back, from 21,426 to 19,002 as the value of the average trade climbed. The report says foreign investors accounted for 65% of total trades.
However the total capital raised by companies listed on the ZSE plunged lower in 2013 compared to 2012, due to the liquidity crunch pervading the economy. According to another report in the Herald, ZSE-listed firms only completed rights issues for $17m in 2013 – NMBZ ($14m) and Interfresh ($3m). Capital-raisings worth $60.1m were approved in the second half and are due in 2014: Aico shareholders approved a rights issue for $15.1m and Seedco shareholders $40m. As mentioned below, top performer Afdis (African Distillers) will seek $5m to fund local production and repay shareholder loans.
A total of $124m was raised by firms listed on the ZSE listed in 2012.
(Note all $ figures refer to USD).