We received a very interesting press release from Econet`s Ecocash, which has arguably become Zimbabwe`s largest money transfer agent. This time there are opening up new opportunities with the Zimbabwe`s Stock Exchange and its another first form from the telecoms giant.
According to their official publicist, Econet Wireless is setting up a payment system for shares on the Zimbabwe
Stock Exchange using its EcoCash service.
The system is designed to make it possible for small investors to buy and
sell shares using EcoCash.
Confirming the development, Econet Wireless Services CEO Mr Darlington
Mandivenga said: “I can confirm that we are working on a project to enable
people to buy and sell shares using EcoCash. It is mostly directed at
small investors who buy shares for less than $5000 at a time, to as little
as $50.” Picture source :TechZim
He went on to say the system will be an electronic trading platform which
will also make share trading much more transparent.
The move by Econet could go a long way towards getting ordinary
Zimbabweans interested in owning shares in companies listed on the stock
The current system tends to favour large institutional investors as well
as foreign investors. Stock brokers find it difficult and expensive to
deal with the needs of small investors looking for small volumes of
shares, such as those worth $100. The system Econet has in mind will allow
brokers to address this market without increasing their costs.
Econet Wireless has been pushing the use of EcoCash in many areas of
economic activity, including public transport, retail trading, school fees
payments and utility bills. Many of its subscribers now buy their airtime
using EcoCash instead of buying from vendors.
Mr Mandivenga did not say when the platform would be ready, but confirmed
that discussions with brokers and the securities authorities would start
once the system is up and running.
He said Econet would not set up a brokerage firm to deal with its new
service. “We are just providing a payment solution, which we expect the
brokers and public to use. They will all make money from it,” he said.