In what is perhaps the clearest and toned down statement yet since trading on the ZSE was suspended on June 26, Zanu-PF recommended to government that trading be resumed and that the Old Mutual delisting recommendation be implemented within the shortest possible time to avoid undue disruption to inflows of investment capital. Under a new dispensation adopted model, which is shaped by the Chinese Communist Party governance, Zanu-PF superior to Government and as such policy is guided by them. The clarification also implies that the initial policy directive had come from the party.
Acting spokesman Patrick Chinamasa said that the statement had been issued to give clarity on the position the party had taken at its last Politburo meeting, which had endorsed the "ejection "of Old Mutual "from the financial system." In his statement, Chinamasa insists the common party and government position that fungibility was being abused and emphatically notes that Zanu-PF " totally opposed to the fungibility of the Old Mutual shares." Because of this the party reaffirmed its policy position that the ZSE should compulsorily delist the shares from ZSE. "ZANU-PF says an emphatic NO, to self-enrichment through speculative trading and externalisation"
However, to protect the interests of the 30168 shareholders of Old Mutual Limited, ZANU-PF is recommending to its government that it sets up a stock exchange which will trade only in US$. Chinamasa also noted that Old Mutual dividends are paid in SA Rands which therefore represents foreign earnings for the country in respect of the shares on the Zimbabwean register.
"Old Mutual Limited can then be allowed to migrate, find home and trade on such a foreign currency-denominated counter in Zimbabwe. Trading on other counters has been normal and the Party is recommending that trading be resumed."
Chinamasa said that setting up of the foreign exchange denominated stock exchange is an appropriate institution for raising and attracting foreign direct investment into Zimbabwe. "Companies that want to invest in Zimbabwe and requiring foreign currency would then list on such a stock exchange to attract foreign direct investment in foreign
currency for investment."
ZSE chief executive Justin Bgoni welcomed the statement as practical as it was in line with recommendations sent to the Ministry. "We understand the Government concerns on the OMIR and we think that the solution is practical. We will engage further to see how best the recommendations will be implemented and for this we await direction from the minister. We also welcome that the offer to list on a USD platform has been extended to other local companies."
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