Finance Minister Patrick Chinamasa on Monday announced that the Zimbabwe Stock Exchange has been transformed from a mutual society into a public company, with the government holding a 32 percent stake and brokers 68 percent.
Chinamasa, who signed the agreement that changed the 68 year-old mutual society into a company, said the shareholders would soon sell part of their stake to the public.
But economist John Mufukare of the Employers’ Confederation of Zimbabwe said while he welcomed the development since it was in tandem with the world trends, he does not approve of the government holding shares in the entity as this may scare away some investors.
“The bad side of the transformation is the percent that is being taken by the government. It’s almost a third of the company’s shares and this is disturbing,” Mufukare said.