Security Commission seeks advice

The Securities Commission of Zimbabwe has asked the Washington-based World Bank to help it modernise the Zimbabwe Stock Exchange and give advice on corporate governance.

Willia Bonyongwe, SEC Chairperson, said: “We are working with the World Bank in order to try and strictly adhere to international Corporate Governance issues. We hope the World Bank will help us come up with a better system on our bourse and our corporate world.”

“We will be using a new corporate governance code in Zimbabwe which is an update of the previous one. It is ready and I am part of the committee that designed it,” she added.

The design of the new code was coordinated by top lawyer, Canaan Dube, a senior partner with Dube, Manikai and Hwacha Legal Practitioners (Private) Limited. It was designed along the lines of the Mervyn King III document in South Africa.

“We are looking at various issues such as executive directors and their roles. Why should shareholders run their own companies? This can lead to poor corporate governance as is the case on the Zimbabwe Stock Exchange which is national disaster,” Bonyongwe said.

The ZSE has held talks with the Johannesburg Securities Exchange to try and computerise their outdated trading system in Harare.

“They still use paper which is an old method of trading,” Boyongwe said. “We must use IT instead of the old system and we have told them this.”

Post published in: Business

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