Zimbabwe: Making Investing Easier Through ZSE Direct

A market research conducted by the Zimbabwe Stock Exchange (ZSE) in 2020, indicated that participation by individual Zimbabweans on the local capital market was marginal. Some of the barriers cited included lack of appreciation of the investment process and the perception that investment is for the sophisticated.

The results from this survey prompted the ZSE to launch ZSE Direct, a product that would make accessing the market very simple even for first time investors. ZSE Direct, an in-house development, was launched in September 2020 and provides retail investors with a smart way to manage their ZSE investments and view their Central Securities Depository (CSD) holdings remotely.

Introducing ZSE Direct

ZSE Direct came in to complement the platforms already in the market with the aim to provide more choice for investors and increase retail participation as we drive Financial Inclusion. With a minimum initial investment of $500, an investor can register, fund their wallet, buy and sell securities and monitor market performance remotely through the web portal (www.zsedirect.co.zw) or mobile application (Android and IOS).

ZSE Direct Key Features for Investors

The key features available on ZSE Direct to assist investors through their investment journey include;

A user friendly interface

A view of one’s portfolio

Latest Market Statistics

Market Depth

Price range on both sell and buy tabs

Instant sell proceeds after a successful matched and confirmed order

Odd Lot (Placing of bids or offers for volumes from 1 up to 99)

Investing through ZSE Direct

ZSE Direct gives an investor direct access to buy and sell securities listed on the ZSE remotely, making investing on the ZSE simple and easy for retail investors. To begin your investment journey through ZSE Direct, follow these simple steps;

Register a ZSE Direct account

An investor can create an account through the web platform (www.zsedirect.co.zw) or through the ZSE Direct mobile application available on Google Play Store for Android users and Apple Store for IOS users.

To register an account, an investor is required to complete the following KYC Details;

Personal details

Select preferred stockbroker

Banking details and source of funds

Upload National ID, proof of residence, photo

Authentication of KYC documents

Upon successful registration on ZSE Direct, your selected broker will authenticate your KYC details and create the Central Securities Depository (CSD) and Electronic Depository System (EDS) account for you. This process can take up to 48-72 working hours.

Once the CSD and EDS account has been created, you will receive a confirmation email and then you will be able to start buying and selling securities on the ZSE.

Funding your ZSE Direct Wallet

Once you have been allocated a CSD number you can proceed and fund your ZSE direct wallet.

An investor can deposit funds directly into their ZSE Direct wallet through Zimswitch or mobile money (EcoCash)

Executing orders through ZSE Direct

To assist investors to make informed decisions, ZSE Direct has a key feature- market depth to help you determine the appropriate price for your order compared to existing orders already in the order book.

The market depth feature shows up to 10 best orders on both the buy and sell side.

Placing orders through ZSE Direct

To place an order through ZSE Direct, select the counter, and input the volume and bid price

Once the order has matched, you will receive confirmation of the order on your registered email.

Settlement Cycle

When you buy or sell shares in a listed company, you must exchange the title or legal ownership of those shares for money. This exchange is called settlement.

The settlement cycle on ZSE is T plus 3. This means it takes T plus 3 days, for the stocks you bought to reflect under your portfolio.

That is, if you purchase shares on Monday, the shares will be credited to your account on Thursday, subject to payment being made for the same.

Therefore your trades on ZSE Direct are expected to appear under your portfolio after settlement.

Information provided in this article is for educational purposes and does not constitute financial advice. You should obtain independent advice from a registered stockbroker or financial advisor before making any financial decisions.

For more information about ZSE Direct, visit

www.zsedirect.co.zw

Email: [email protected]

Tel: +263 24 2886830-5

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