Zimbabwe’s stock exchange becomes an unlikely safe haven ahead of poll
Zimbabwean stocks are rising — but that’s not necessarily a good sign
Zimbabwean stocks are rising before Monday’s election. But in the topsy-turvy world of the country’s equities market, that’s not necessarily a sign of investor confidence. The Harare exchange’s benchmark index has climbed 10% since the election date was set on May 30. The gains suggest Zimbabweans are continuing to use equities as a refuge to preserve their wealth, concerned that there is a risk of inflation as the government prints dollar-denominated bond notes to overcome a shortage of hard currency. About 5.6-million people have registered to vote for a new president, lawmakers and local government representatives. The front-runners in the presidential contest are Emmerson Mnangagwa, who became Zimbabwe’s president in November when the ruling party forced an end to Robert Mugabe’s 37-year rule, and Nelson Chamisa, a lawyer and church pastor from the main opposition.
"Whoever gets elected, the economic challenges are quite paramount," said Nick Ndiritu, Cape Town-based co-ma...
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