SECZim Holds 7th AGM, Charts Path for 2025 Amid Economic Volatility
The Securities and Exchange Commission of Zimbabwe (SECZim) held its 7th Annual General Meeting (AGM) on June 30, 2025, offering a detailed review of its 2024 operations, regulatory milestones, and strategic priorities for 2025. The meeting came at a time of economic uncertainty, providing key insights into the evolving financial landscape and SECZim’s ongoing efforts to modernize and strengthen Zimbabwe’s capital markets.
The AGM opened with a global and local macroeconomic update, noting that global growth is forecast to rise modestly to 3.3% in both 2025 and 2026. On the domestic front, Zimbabwe’s economy is projected to rebound with a 6% growth rate in 2025, recovering from a 2% contraction in 2024 caused by severe drought conditions. Improved agricultural productivity and government support are expected to drive this recovery.
However, inflation remains a significant concern. Annual inflation in US dollar terms surged to 14% by mid-2025, while Zimbabwe Gold (ZWG) inflation climbed to a staggering 92.5%. The ZiG currency also continued to struggle, losing over 4% of its value in 2025 following a steep 47% depreciation in 2024. These macroeconomic factors continue to affect investor confidence and market performance.
On the capital markets front, SECZim reported contrasting trends between the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX). While the ZSE saw turnover drop by 29% to USD119 million in 2024, the VFEX recorded an impressive 117% increase in turnover. Total market capitalization stood at USD3.87 billion at the close of 2024, with the ZSE accounting for roughly two-thirds of the figure.
Funds under management continued to grow, reaching ZWG90.35 billion (approximately USD3.5 billion) by the end of 2024. Property investments remained dominant, comprising 47% of total assets. Offshore investment activity also picked up, with allocations reaching USD20 million in the first quarter of 2025.
Regulatory developments formed a major part of SECZim’s 2024 agenda. The Commission issued six new licenses and registered six new Collective Investment Schemes (CIS), bringing the total number to 87. However, 13 licenses were cancelled due to non-compliance, highlighting SECZim’s increased enforcement efforts. The Commission also conducted 10 onsite inspections and seven Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) audits, penalizing over 60 institutions.
Modernization efforts gained momentum, with the launch of an online licensing platform and the rollout of five new regulatory directives, including updated financial reporting standards and offshore investment guidelines. Internally, SECZim implemented a structural reorganization to improve efficiency, reducing its number of departments and streamlining senior management roles.
Despite this progress, the Commission acknowledged several ongoing challenges. These include declining turnover on the ZSE, continued delistings, chronic understaffing—operating at only 56% capacity as of April 2025—and continued reliance on manual processes, which hamper operational efficiency.
Looking ahead, SECZim’s key priorities include amending the Securities and Exchange Act to enhance investor protection and boost confidence in Zimbabwe’s capital markets. The Commission is also working closely with the Ministry of Finance and Economic Development and Investment Promotion (MoFEDIP) to revive the secondary market for government bonds and prepare for the 2026 Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) mutual evaluation.
The 7th AGM reaffirmed SECZim’s commitment to regulatory integrity, market development, and innovation as it navigates the challenges and opportunities of 2025.
