Business Reporter
THE Zimbabwe Stock Exchange recorded a 13 percent increase in income to $1,9 million for the year ended December 31 but the bourse said resolution of key issues by Government regarding debt, clarity on Indigenisation, Empowerment Act and re-engagement of the international community could play up economic performance and in turn boost revenue.
The bourse’s 2013 annual statement shows that surplus increased two percent to $338 182 from $332 506 the previous year.
Total income for the year under review rose to $1,928 241 from $1,709 million. Trading levies, membership fees and non-membership fees at $1,014 million contributed 52,9 percent to the total income for the year while listing and corporate action fees at $0,632 million contributed 32,81 percent.
In the report, ZSE chief executive Alban Chirume said the review of the investment strategy on the deployment of cash resources in the market resulted in the growth of interest income of 32,59 percent from $0,161 million in 2012 to $0,214 million in 2013.
“The strong growth in interest income to $0,214 million resulted in contribution of 11,08 percent to total revenue compared to a contribution of 9,43 percent in the comparative period,” said Mr Chirume.
The remaining contribution of 3,52 percent to total income was from gains arising from disposal of an investment portfolio and sundry income streams.
The operating expenditure at $1,590 million was 15,47 percent higher than the $1,377 million incurred in the prior year.
“This was largely due to expenditure related to significant projects initiated during the year which included the launch of the Automated Trading System and increased occupancy costs. The expenses of the ZSE are generally of a fixed nature, hence keeping the cost base consistent demands ongoing management attention,” said Mr Chirume.
He said the ZSE projects to save $0,072 million on occupancy if the bourse relocates to owner occupied property. The exchange has already bought property in one of Harare’s affluent suburbs.
Staff costs chewed up $730 479 while other expenses cost the bourse $776 762 in 2013 up from $498 387 in 2012.
“Despite the higher growth of expenses compared to revenue, the total comprehensive income grew by 1,81 percent to $0,338 million compared to $0,333 million realised in the prior period. Capital expenditure for the period was $0,590 million which included the acquisition of property of $0,410 million,” said Mr Chirume.
Mr Chirume said resolving the debt overhang and attracting foreign direct investment are key importance going forward.
“These, to a great extent, determine the perception that exists in the market on the level of political risk in Zimbabwe,” said Mr Chirume.