THE Zimbabwe Stock Exchange (ZSE) is likely to experience a mixed bag of results in 2024, with the El Niño-induced drought posing a significant challenge to agriculture-focused companies, according to Securities and Exchange Commission of Zimbabwe (SecZim) chief executive Anymore Taruvinga.
Taruvinga acknowledged the potential impact of the drought on agro-value chain counters, which dominate the ZSE. He warned of “minimal throughput input” and “increased expenditure towards imports,” potentially affecting market performance.
The country’s history of severe droughts, most recently in 2016-2017, raises concerns about the impending El Niño’s potential to exacerbate vulnerabilities. Despite the agricultural headwinds, Taruvinga expressed optimism for other sectors.
He sees continued growth in financial services, buoyed by the “beacon” of foreign currency generation in mining, particularly with recent gas discoveries. Construction is also expected to benefit from government initiatives, creating a “fair balance” in the market.