ZSE resumes trading after a month long shutdown

The Zimbabwean Stock Exchange has finally resumed trading this morning after a month-long shutdown. This decision came after the Government ordered an investigation into illegal foreign dealings by some companies, leading to the suspension of three major companies on the stock exchange, including insurance giant Old Mutual and cement maker PPC. The resumption of trading comes amidst an economic crisis in Zimbabwe, with hyperinflation reaching over 700 percent in May and ongoing struggles to stabilize the economy. Last Friday, Harare saw the streets empty and businesses closed as opposition parties organized an anti-corruption protest. However, the protest did not gather the expected momentum, as officials managed to control the situation and prevent large-scale demonstrations. Dumisani Malaya, Chairperson of the Zimbabwe National Editors Forum, shed some light on the aftermath of the protest, highlighting the message of discontent with leadership, governance, and economic hardships being prevalent among the people. Malaya explained that the organizers aimed to address issues such as President Emmerson Mnangagwa's leadership, police failures, and corruption through the protest. While the message was delivered, the execution of the protest lacked tactical effectiveness, resulting in scattered pockets of demonstrations rather than a unified mass protest. Turning to the state of Zimbabwe's economy, Malaya emphasized the government's struggle to prevent an economic collapse since taking office. Despite efforts to contain the crisis, the lack of a coherent economic reconstruction plan and international support has hindered progress. The aftermath of the 2018 elections, marked by civil unrest and international disengagement, has left Zimbabwe isolated on the global stage. One of the government's current targets is the foreign exchange market, with companies like Old Mutual and PPC being accused of facilitating illegal foreign exchange deals. By listing their stocks locally and internationally, these companies allegedly enable the externalization of money through manipulating exchange rates, a practice the government is trying to crackdown on. However, Malaya criticized the government's approach, stating that targeting legitimate businesses instead of addressing systemic economic issues reflects a lack of direction and accountability on the government's part. The decision to suspend trading on the stock exchange serves as a stark indicator of the economy's dire condition and the government's desperate attempts to shift blame. Despite the challenges ahead, the resumption of trading on the Zimbabwean Stock Exchange signals a cautious step towards economic normalization. As the government grapples with deep-rooted issues and external pressures, the road to recovery remains uncertain for Zimbabwe's struggling economy.