Increased foreign investor appetite for Zimbabwe’s stocks helped lift market turnover on the Southern African nation’s main bourse in the second quarter of 2025, according to its quarterly newsletter, but overall market value still fell.
Erratic economic policy, high inflation, and currency instability have for years discouraged foreign investment in Zimbabwe. But economic fundamentals are improving and a new gold-backed local currency – the Zimbabwe Gold (ZiG) – has largely held its value this year.
Foreign participation on the Zimbabwe Stock Exchange rose to 26.53% in the second quarter from 15.39% in the previous quarter, the newsletter published on Thursday said. Foreign trades jumped 153.94% to ZiG 743.6 million ($27.7 million), up from 292.8 million in Q1.
In comparison, foreign investors accounted for over 40% of activity on the ZSE in the early 2010s.
Total market turnover on the ZSE increased 53.14% to ZiG 1.49 billion in the quarter, the newsletter said.
The total market value, however, fell 3.08% to ZiG 62.64 billion, while the ZSE All Share Index declined 3.91% to close the quarter at 197.23 points.
“The total turnover for the top five companies contributed 86.19% of the equities turnover and 81.01% of the total market turnover for the period under review,” the newsletter said.
On the Victoria Falls Stock Exchange, a U.S. dollar-denominated bourse designed to attract offshore capital, turnover reached $15 million in Q2, while market capitalisation slipped to $1.25 billion from $1.29 billion in the previous quarter.
Average foreign participation on the exchange stood at 18.73%.
An uptick in participation and turnover, alongside governance reforms like the ZSE’s self-listing earlier this month could lay the groundwork for further recovery in the second half of the year, analysts said.
The International Monetary Fund, meanwhile, has welcomed the ZiG’s stability but is urging fiscal and monetary discipline.
