The combination of thin trades, an exodus of key counters, and heightened tracking errors underscores the structural challenges facing ETFs on the ZSE. 

All thanks to capital market participants, who advocated for the reduction of the capital gains withholding tax at a conference, which was held in Nyanga around that same period. 

The favourable environment for capital raise in USD, reduced trading costs, forex retention benefits and tax incentives attracted 15 listings over the past four years.

Economic analysts have debated the practicality of the budget, particularly since over 80% of the projected revenue is expected to come from taxes.

By the close of 2023, the currency crisis had deepened, with the parallel exchange rate of US$/ZWL reaching 10 500, while the auction rate lagged behind at a 72% discount.

While individual risk appetites and goals vary, capital preservation and reduced risk remain priorities. 

Currently, Delta accounts for 30% of the total ZSE market capitalisation and contributes over 50% of the average daily traded value on the local exchange.

On the VFEX, market capitalisation dipped by 1%, and turnover declined by 41% to US$11,6 million from US$19,6 million recorded in December 2024.

Beyond these specific uses, the preference for USD among economic players remains prevalent, as highlighted by the statistics above.

The ZSE ended last year with a market capitalisation of US$1,67 billion, which declined further to US$1,48 billion in January 2025 and currently stands at US$1,45 billion.

This move has sparked mixed reactions, similar to the lack of excitement around Econet’s acquisition of Ecocash’s non banking assets

This includes examining their relationship with macro-economic challenges, how most banks have managed to stay operational, and what the future holds for the sector.

In February, market activity was largely driven by the two most liquid stocks on the local bourse, which accounted for over 86% of total trading volume.