Tapiwanashe Mangwiro
THE performances of the Zimbabwe Stock Exchange and the Victoria Falls Stock Exchange are increasingly reflecting improved stability and recovery of the economy, with analysts saying recent earnings trends point to strengthening fundamentals in key sectors.
This is despite the lingering local currency liquidity constraints.
Zimbabwe’s economy is projected to grow by 6,6 percent, driven by a rebound in agriculture, strong mining output (especially gold), increased services and improved macroeconomic stability (lower inflation, stable ZiG currency) following 2024’s drought-induced slowdown.
Economic analysts noted that the financial results of several listed companies show that the economy is adjusting well to the policy environment, supported by currency stability and growing market confidence.
Economist Mr Malone Gwadu said while performance across listed firms was not uniform, the financial results of several top companies demonstrated resilience and sustained growth, which mirrors dynamics in the real economy.
“Listed companies are showing mixed signals, but what is encouraging is that blue-chip firms are on a clear growth trajectory,” said Mr Gwadu.
“They are gaining market share, recording higher sales and posting improved profitability, which points to recovery in key segments of the economy.”
He said segments such as consumer staples, mining and financial services provided some of the clearest indications of sustained growth, as these firms continued to adapt to policy changes and evolving market conditions.
“These sectors are showing that, with the right fundamentals, businesses can still grow and invest even under tighter monetary conditions,” he said.
The performance of the ZSE and VFEX has also been supported by an increasingly stable macroeconomic environment, which has improved the credibility of equity markets as indicators of economic health.
According to Mr Gwadu, the two exchanges act as important barometers of macroeconomic stability, particularly in terms of liquidity trends and investor behaviour.
“The ZSE and VFEX reflect what is happening in the wider economy, especially regarding liquidity,” he said.
“Trading levels and capital raising activity give a clear picture of how money is circulating in the market.”
He added that the growing durable stability of the local currency has significantly improved the quality of trading on the ZSE, allowing share prices to better reflect underlying company performance.
Zimbabwe introduced a new gold and foreign currency-backed ZiG currency in April last year, which remained largely stable and has seen inflation plunge from over 95 percent in June to 15 percent in December.
The ZiG replaced the inflation-weary Zimbabwe dollar, which had resulted in a significant loss of confidence in the economy amid sustained volatility.
“The stability of our local currency has helped to purify trades,” said Mr Gwadu.
“We are now seeing prices that are more aligned to business fundamentals, rather than trades driven by inflation hedging or exchange rate volatility.”
The Zimbabwe Stock Exchange Group said in its third-quarter review that the operating environment during the period under review was relatively stable, characterised by tighter monetary policy and limited money supply growth.
“While these conditions initially suppressed broad investor sentiment, a renewed policy focus on exchange rate stability later fostered improved price discovery and transactional efficiency,” the ZSE said.
Trading value on the Zimbabwe Stock Exchange surged by 144,40 percent to ZiG 1,97 billion in the third quarter of 2025, compared to the equivalent period in 2024.
This growth was heavily concentrated, with the market’s top five performers accounting for 94,14 percent of the total turnover.
The VFEX recorded its highest index level since inception, closing the quarter at 150,83 points. The total value traded on the VFEX in the third quarter of 2025 was US$16,79 million, a significant 106,27 percent increase from US$8,14 million in the third quarter of 2024.
Leading these was Econet Wireless Zimbabwe Limited, followed by Delta Corporation Limited, NMBZ Holdings Limited, CBZ Holdings Limited and TN CyberTech Investments Holdings Limited.
Investment analyst Mr Gerald Amon said the improving operating environment was gradually restoring investor confidence in the capital markets, with positive implications for long term economic growth.
Mr Amon said there was growing confidence among investors, particularly in well-managed, fundamentally strong companies, driving the positive performances of these companies.
“Consistent earnings from blue-chip counters show that the economy is stabilising and that businesses are positioning themselves for growth.”
Mr Amon also highlighted the strategic importance of the VFEX as a platform for attracting foreign currency investment and supporting export-led growth.
“The VFEX remains a strong long-term proposition,” he said.
“As liquidity deepens and more companies take advantage of the platform, it can play a key role in mobilising investment and supporting national development goals.”
While challenges such as liquidity constraints persist, analysts agree that the direction of travel is positive.
The improving performance of leading listed companies, coupled with currency stability and evolving investor behaviour, suggests that local capital markets are increasingly aligned with the broader economic recovery.
As policy consistency continues and confidence builds, the ZSE and VFEX are expected to play an even greater role in supporting investment, job creation and sustainable economic growth.
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