Almot Maqolo, Staff Writer 
THE Zimbabwe Stock Exchange (ZSE) recorded a significant surge in both its top and bottom lines in the year ended December 31, 2023 allowing it to declare a full year dividend of ZiG5,25 and US$0,88 per share despite strong macroeconomic and market headwinds.
In 2023, the exchange realised a 303,84 percent jump in its inflation adjusted profit to $6,83 billion from $1,69 billion in 2022.
Revenue went up 279,61 percent to $32,9 billion in 2023 from $9,69 billion in 2022. Most of the income was generated from annual listing fees, which contributed $26,59 billion, a 513 percent rise from $4,34 billion in 2022.
ZSE chief executive, Justin Bgoni
Trading fees contributed $2,61 billion in 2023, compared to $2,19 billion in the comparable period. Corporate action and document review fees netted $1,29 billion during the period under review.
This strong performance has enabled the bourse to declare a dividend.
“The dividend is a blend between the US dollar and ZiG, which represents US$0,88 per share and ZiG5,25 per share. The ZiG amount equates to $13,109.36 as at the currency changeover date being 5 April 2024,” reads the notice to shareholders.
As expected due to inflationary pressures in the market, ZSE total expenses ballooned to $26,7 billion. This represented a 157 percent rise from the $10,38 billion recorded in 2022.
The majority of the expenses were concentrated on staff costs, which consumed $14,8 billion in 2023 compared to $4,8 billion in 2022.
Other operating costs increased 206 percent to $11,55 billion from $3,78 billion in the comparable period.
According to the financials, there were no fair value losses on financial instruments recorded.
The bourse recorded a monetary loss of $2,54 billion.
Profit before tax went up 226 percent to $7,3 billion from $2,24 billion previously.
“The board of directors have considered it appropriate to prepare the financial statements on a going concern basis due to the group’s ability to continue in operational existence for the foreseeable future on the basis of sound liquidity, strong financial position and business continuity strategies that have been put in place,” reads the statement accompanying the results.
In August 2022, the group received a government grant of US$350 000 for the implementation of the market surveillance system.
“There were no conditions or contingencies attached to the grant.”
The group’s asset base strengthened by 160 to $27,66 billion in 2023 from $10,65 billion in 2022.
The ZSE has seen a significant number of de-listings from its primary bouse with many opting for its USD-denominated subsidiary the Victoria Falls Stock Exchange (VFEX) which was introduced in October 2020.
Six companies delisted from the ZSE last year as the rapid depreciation of the local currency significantly eroded the value of stocks on the market.
Out of the six counters, save for microfinancier Getbucks, five of them which are Innscor, Axia, African Sun, Zimplow and First Capital Bank went on to list on the VFEX citing several incentives available for value preservation for shareholders, chief among them the capacity to raise capital in foreign currency.
Analysts have predicted the migration to the VFEX to continue in the course of the year despite the introduction of the new ZiG currency expected to bring stability in the market.
In March this year, clothing firm, Edgars Stores got shareholders’ approval to delist from the ZSE and migrate to the VFEX.
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