The stock exchange is a vital part of the financial system, providing a platform where
companies can raise money by selling shares to investors. In Africa, different countries have
their own stock exchanges such as the Nigerian Stock Exchange, the Johannesburg Stock Exchange
in South Africa, and the Zimbabwe Stock Exchange (ZSE), which is the main exchange in
Zimbabwe. The ZSE is based in Harare and facilitates the buying and selling of shares of
publicly listed Zimbabwean companies such as Delta Corporation, Econet Wireless Zimbabwe, and
CBZ Holdings.
In basic terms, stocks (also called shares or equities) represent partial
ownership in a company. When you buy a share of a company listed on the ZSE, you become a
shareholder, which means you own a small part of that company and may be entitled to
profits in the form of dividends.
The ZSE provides an opportunity for ordinary Zimbabweans to invest and grow their money,
instead of just saving it in a bank. For example, if you had bought shares in Econet Wireless a
few years ago, your investment might have grown in value significantly depending on the
company’s performance. This growth in value is called capital appreciation.
Understanding some key terminologies is essential to navigating the stock exchange:
IPO (Initial Public Offering): This is when a company lists its shares on the
exchange for the first time. For instance, when Simbisa Brands was first listed on the
ZSE, it did so via an IPO.
Broker: A licensed individual or firm that buys and sells shares on behalf of
investors. In Zimbabwe, you can open a trading account through registered brokers like Old
Mutual Securities or IH Securities.
Portfolio: This is the collection of different shares and investments an investor
owns. A well-diversified portfolio might include stocks from multiple sectors like
banking, telecoms, and manufacturing.
Market Capitalization: The total value of all a company's shares on the market. For
example, Delta Corporation is one of the most valuable companies by market capitalization
on the ZSE.
Trading Day: This refers to the days and hours when the stock exchange is open. In
Zimbabwe, the ZSE is open from Monday to Friday during business hours.
The ZSE operates under the oversight of the Securities and Exchange Commission of Zimbabwe
(SECZ), which ensures transparency and fairness. Zimbabwe also introduced the Victoria
Falls Stock Exchange (VFEX), a USD-denominated exchange meant to attract foreign investment and
improve liquidity in hard currency, especially for companies with regional exposure.
Investing in the stock market can be a great way to build long-term wealth in Zimbabwe. However,
like all investments, it comes with risks. Prices of shares can go up or down based on company
performance, economic conditions, and even government policy. That’s why many Zimbabweans now take
time to learn about financial literacy before investing.
In conclusion, the stock exchange is not just a tool for the elite—it’s a platform that every
Zimbabwean can use to grow their financial future. With access to a stockbroker, a basic
understanding of the market, and some patience, one can participate in the growth of the country's
economy while building personal wealth.
The stock exchange is a regulated marketplace—yes, a real institution—where shares of
companies are bought and sold. In Zimbabwe, the main one is the Zimbabwe Stock Exchange
(ZSE), and it’s not just a physical building in Harare, but also a digital system that
facilitates secure and transparent transactions.
A stock or share represents part ownership in a company. When you buy shares in
Econet or Delta Corporation, for example, you actually own a small piece of that
company.
You can make money in two main ways: through dividends, which are usually paid out a few
times a year if the company makes profit, and through capital gains, when you sell your
shares at a higher price than you bought them.
Unlike gambling, stock trading is not based on luck alone—it involves analyzing companies and
market trends, although it does carry risk. The value of stocks goes up or down
depending on many factors like company performance, economic policy, or investor
confidence.
Trading is usually short-term buying and selling for quick gains, while investing
is long-term and often more stable—better for beginners who want to learn without too much
stress.
You don’t need thousands to begin; many local brokers in Zimbabwe allow you to start with as
little as $10.
You don’t have to visit a bank—today you can buy stocks via apps like C-TRADE or through
licensed brokers such as IH Securities or Old Mutual.
A broker is simply a middleman who helps you buy and sell stocks—they are essential,
especially for beginners.
Yes, there is a risk of losing money if a stock crashes, especially if the company fails, but
with research and a diverse portfolio, those risks can be managed.
You don’t need to be a math genius either—basic financial literacy and common sense are more
important than equations.
The ZSE allows you to invest in local companies and even trade in USD via the
Victoria Falls Stock Exchange (VFEX).
The length of time you hold a stock depends on your strategy—some hold for months or even years
to get bigger returns.
For beginners, apps like C-TRADE and platforms such as ZSE Direct make starting
easy.
Lastly, yes—you do pay capital gains tax on your profits in Zimbabwe, and all investors
must follow regulations set by the Securities and Exchange Commission of Zimbabwe
(SECZ).
With the right mindset and education, stock trading can become a powerful tool to build wealth
locally.
Buying stocks in Africa, including Zimbabwe, starts with understanding the basic requirements
and steps involved.
First, you need to choose a licensed stockbroker—a company or individual authorized by
the local stock exchange to help investors buy and sell shares. In Zimbabwe, this is the
Zimbabwe Stock Exchange (ZSE), while other African countries have their own exchanges
like the Johannesburg Stock Exchange (JSE) in South Africa or the Nigerian Stock Exchange
(NSE). Popular brokers in Zimbabwe include IH Securities, Old Mutual Securities, and ZSE
Direct.
Once you select a broker, you will need to open a trading account with them. This
usually involves submitting identification documents such as your national ID or passport,
proof of address, and sometimes a tax identification number, depending on local regulations and
the broker’s policies.
After your account is verified and approved, you can fund it by depositing money into the
broker’s designated bank account. The minimum amount required varies, but many brokers allow
you to start with as little as $10 or the local currency equivalent, making stock
ownership accessible to many Africans.
With your account funded, you can now browse available stocks listed on the exchange. These
stocks might include shares of large companies such as Econet Wireless and Delta Corporation in
Zimbabwe, MTN in South Africa, or Dangote Cement in Nigeria, depending on the market you are
trading in.
When you decide which shares to buy, you instruct your broker to place a buy order on
your behalf. Orders specify the number of shares and the price you are willing to pay. The
broker submits your order to the exchange’s trading platform during official trading hours,
which usually run Monday to Friday during the day.
Once your buy order matches a seller’s sell order at the agreed price, the transaction is
executed, and the shares are officially transferred to your account.
You will receive a trade confirmation from your broker detailing the purchase, including the
price, number of shares, and transaction fees.
Speaking of fees, remember that brokers charge commissions or transaction fees, so factor this
cost into your investment plan.
After purchase, your shares are held electronically within a central depository, ensuring your
ownership is secure and easy to manage.
You can track the performance of your shares using the broker’s app or online platform and
decide when to hold or sell based on market conditions and your financial goals.
Lastly, always keep records of your transactions for tax purposes, as many African countries
require reporting of capital gains when you sell shares at a profit.
In summary, buying stocks in Africa involves selecting a licensed broker, opening and funding a
trading account, placing a buy order during trading hours, and managing your investments
carefully. Thanks to modern digital platforms and apps, this process is becoming increasingly
accessible to everyday Africans, allowing them to participate in the growth of local and
regional economies.
When it comes to stock trading strategies, investors use different approaches depending
on their goals, risk tolerance, and time available.
One popular strategy is buy and hold. This involves purchasing stocks and holding onto
them for a long time, often years, to benefit from the company’s growth and dividends.
It’s a less stressful approach suited for beginners or those who prefer steady wealth building
rather than quick profits.
Another common strategy is day trading. Day traders buy and sell stocks within the same
trading day to capitalize on small price movements.
This requires close attention to market trends, quick decision-making, and often significant
experience.
It’s high risk but can yield fast profits if done correctly.
Swing trading falls somewhere between buy-and-hold and day trading.
Swing traders hold stocks for several days or weeks, aiming to profit from expected upward or
downward price “swings.”
This strategy requires good market analysis and timing but is less intense than day
trading.
Then there is value investing, which focuses on buying undervalued stocks that the
market has overlooked.
Value investors look for companies with strong fundamentals, trading below their true worth,
hoping the price will eventually reflect the company’s real value.
Growth investing targets companies expected to grow faster than the market average.
These companies may not pay dividends but reinvest earnings to expand, and investors buy shares
hoping for capital gains as the company grows.
Finally, some investors use dividend investing, focusing on stocks that regularly pay
dividends.
This strategy aims to generate passive income while potentially benefiting from stock price
appreciation.
Each strategy carries different levels of risk and requires different skill sets.
It’s important to choose a strategy that matches your financial goals, time commitment, and
risk tolerance.
Many successful investors combine elements from several strategies to build a diversified
approach that works best for them.
