Zimbabwe shares are more appealing to foreign investors in the second quarter
In the second quarter of 2025, Zimbabwe’s major stock exchange saw a rise in market turnover due to increased international investor interest, but overall market value continued to decline, according to the country’s quarterly newsletter.
Foreign investment has long been deterred by Zimbabwe’s erratic economic policies, high inflation, and unstable currency. A new local currency backed by gold, the Zimbabwe Gold (ZiG), has mostly maintained its value this year, however, and economic fundamentals are improving.
From 15.39% in the first quarter to 26.53% in the second, foreign involvement on the Zimbabwe Stock Exchange increased, according to the newsletter released on Thursday. Compared to Q1’s 292.8 million, foreign trades increased 153.94% to ZiG 743.6 million ($27.7 million).
By contrast, more than 40 percent of the ZSE’s activity in the early 2010s came from overseas shareholders.
The ZSE’s overall market turnover rose 53.14% to ZiG 1.49 billion during the quarter, according to the newsletter.
But the ZSE All Share Index dropped 3.91% to end the quarter at 197.23 points, while the overall market value dropped 3.08% to ZiG 62.64 billion.
“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,” stated the newsletter.
The market capitalization of the Victoria Falls Stock Exchange, a U.S. dollar-denominated exchange intended to draw in foreign investment, dropped to $1.25 billion from $1.29 billion in the previous quarter, while turnover hit $15 million in the second quarter.
18.73% of the exchange’s participants were foreigners on average.
Analysts predicted that a further recovery in the second half of the year might be facilitated by an increase in participation and turnover as well as governance improvements like the ZSE’s self-listing earlier this month.
Although it has praised the stability of the ZiG, the International Monetary Fund is calling for monetary and fiscal restraint.
