Home Business Zimbabwe: ZSE Suspension Obliterates Zim’s Property Rights Record

Zimbabwe: ZSE Suspension Obliterates Zim’s Property Rights Record

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Government’s decision to unilaterally suspend the Zimbabwe Stock Exchange (ZSE) from trading has once again exposed the country’s propensity to violating property rights with the latest move expected to frustrate investor interest in the market, analysts have warned.

On Friday, Government suspended the ZSE from trading together with restricting some elements of mobile money services as authorities moved in to arrest alleged economic sabotage by players in the market.

Market watchers have criticized government for arriving at the decision without having made wider consultations with players in the financial sector on implications of the directive.

“Firstly, there is policy inconsistency in government. Secondly, lack of consultation in coming up with policy then the third, which is very key, is that there are complaints over the issue of property rights. Imagine investors who had bought their stock or securities and they are told the ZSE is suspended. This infringes on property rights and this will have a negative impact on foreign direct investment,” financial markets economist, Victor Bhoroma told 263Chat Business.

Zimbabwe’s tattered property rights record came to the spotlight at the turn of the millennium when government led the land grabs from settler farmers.

The move led to investor flight over the years as property invasions continued unabated.

Lately, the ZSE has failed to attract investor appetite owing to perceived violations of property rights, policy inconsistency and currency devaluation among other reasons.