Experts in the capital markets are projecting further growth in retail investor participation on the Zimbabwe Stock Exchange (ZSE) in 2022 on enhanced access to trading at a time foreign participation has been on a decline.
While foreign participation slowed in the past year, the introduction of easy-to-access platforms for trading has increased participation by retail investors, a trend that stockbrokers EFE Securities see continuing.
In 2021, foreign participation remained sluggish with disposals accounting for 19 percent of the total turnover while purchases claimed a mere 4 percent of the same as foreigners continued to shy away from the Zimbabwean stock market due to delays in movement of international payments.
However, local investors spurred activity both on the buy and sell-side as they piled stocks to hedge against economic volatility, subsequently accounting for 81 percent and 96 percent of the sell and buy-side respectively.
Platforms such as ZSE Direct and C-Trade, have allowed ease of buying and selling of shares by retail investors.
During the first half of the year 2021, the C-Trade platform also spurred trades by retail investors although the values still remained low. With more liquidity coming from the anticipated economic growth spurred by agriculture and mining, more retail investors are expected to turn to stocks as a viable investment option.