Findings from a study at the inaugural capital markets meeting in Harare indicate that very few local people are interested in investing in the stocks, unit trusts and the bond markets.
The study noted that a combination of limited access to information about the capital markets as well as loss of confidence on the investments has seen the markets failing to tap millions of dollars from Zimbabweans.
African Financials director, Mr Rob Stangroom said it is important for regulatory authorities to focus on providing relevant information through educational campaigns so as to attract locals in the capital markets.
“It is all about the commitment from the investors, the fact that we are failing to attract the much needed capital should not be taken as an excuse but an opportunity on how we can forge ahead with efforts to explore fresh markets and unlock value,” he said.
Head of a local financial services firm, Mr Eliah Sarayi noted that government and the private sector should also work together in ensuring relevant measures are put in place to restore investor confidence.
“Well it is all to do with confidence, but we are hopeful that the current ammendments to the securities exchange systems will have a bearing on the direction to be taken by the markets in the short to long term,” said Mr Sarayi.
While the study shows that nations such as Kenya have managed to attract at least 1.5 million participation of locals within their capital markets, Zimbabwe also has a potential of increasing capital markets participation by the domestic investors, currently hovering below 100 000.