Investing in Zimbabwe from the UK: ZSE Stocks, Unit Trusts, and Treasury Bills

For UK-based Zimbabweans, investing back home has historically meant navigating a maze of exchange controls, local broker requirements, and currency risk. That picture has changed considerably. Platforms, regulatory updates, and digital infrastructure now make it possible to buy Zimbabwean equities, unit trusts, and government securities from a sofa in Birmingham or Bristol — without setting foot in Harare. ## The Zimbabwe Stock Exchange: What You're Buying Into The Zimbabwe Stock Exchange (ZSE) is one of Africa's oldest exchanges, with roots dating to 1896. It lists 63 equities across sectors including financials, mining, agriculture, retail, and industrials, tracked by the ZSE All Share Index and the ZSE Top 10 Index. The exchange automated its trading system in July 2015 and now operates on a T+2 settlement cycle. A second platform, the Victoria Falls Stock Exchange (VFEX), launched more recently as an offshore, USD-denominated exchange designed to attract international capital — including diaspora investors. The exchange has been open to foreign investors since 1993, though foreign ownership is capped: individual foreign shareholders are limited to 15% per counter, with a 49% collective ceiling per listed company, in line with Zimbabwe's exchange control and indigenisation regulations. These limits apply to diaspora investors just as they do to any foreign buyer. ## Buying ZSE Stocks from the UK Platforms such as mystocks.africa allow UK-based investors to buy shares listed on the ZSE — including major counters like Old Mutual Zimbabwe (OMZ.ZW) — without needing a local broker relationship in Zimbabwe. The process involves: 1. **Creating an account** — registration requires only an email address to begin. 2. **KYC verification** — uploading a government-issued ID and proof of UK address. This is completed entirely online. 3. **Funding in GBP or USD** — accounts can be funded via debit or credit card, or international bank transfer. GBP payments are converted to USD at live spot rates. Orders are routed to licensed ZSE dealing members on your behalf. Old Mutual Zimbabwe is among the most actively traded counters on the ZSE. Old Mutual Limited is cross-listed on the Johannesburg Stock Exchange, the ZSE, the Namibian Stock Exchange, and the Botswana Stock Exchange, giving it a degree of regional visibility that smaller local counters lack. Capital is at risk with any equity investment, and Zimbabwe-specific risks — currency volatility, policy changes, liquidity constraints — are real considerations. ## Unit Trusts: Managed Exposure to Zimbabwean Markets For investors who prefer diversified, managed exposure rather than picking individual stocks, Zimbabwean unit trusts offer an alternative. Fund managers such as Old Mutual Investment Group Zimbabwe, Zimnat, and CABS (part of Old Mutual) operate money market, equity, and balanced funds denominated in USD or ZiG (Zimbabwe Gold). These funds pool investor capital into a mix of equities, fixed income, and cash instruments. Unit trusts are particularly useful as inflation hedges. Equity-heavy funds hold shares in companies whose asset values tend to track inflation over time, while money market funds often hold short-term government paper with competitive yields. For diaspora investors, the practical route is to open a non-resident account with a Zimbabwean bank or investment house — such as Steward Bank's Diaspora Current Account — and invest from there. ## Treasury Bills: Government Paper as an Inflation Hedge Zimbabwe's government issues Treasury Bills (TBs) through the Reserve Bank of Zimbabwe, typically at competitive yields designed to attract institutional and retail investors. During periods of high inflation, TB yields have been set at rates intended to offer some real return, though historically the pace of ZWL depreciation has eroded returns for investors holding local-currency instruments. The shift towards ZiG-denominated and USD-denominated government securities has made TBs more attractive to diaspora investors. USD-denominated instruments in particular eliminate currency translation risk for those remitting from the UK. The VFEX provides a mechanism for trading some of these instruments in a hard-currency environment. Accessing TBs directly typically requires a relationship with a licensed asset manager or bank in Zimbabwe. Diaspora investors can approach institutions like CBZ Bank, FBC, or Old Mutual's wealth management arm. The ICAZ UK and Ireland Branch also periodically hosts investor education events covering ZSE access and government securities. ## Practical Considerations for UK Investors - **UK tax treatment**: Capital gains and dividend income from Zimbabwean investments are reportable to HMRC. Dividends received are subject to UK income tax; gains on disposal of shares fall under capital gains tax rules. Zimbabwe and the UK do not currently have a comprehensive double taxation agreement in force for individuals, so tax credit arrangements need careful review. - **Repatriation of funds**: Exchange control regulations in Zimbabwe govern the repatriation of investment proceeds. USD earnings on VFEX-listed investments are generally more freely repatriable than ZiG-denominated returns. - **Currency choice**: Wherever possible, diaspora investors favour USD-denominated instruments to avoid exposure to ZiG volatility. - **Due diligence**: The Securities and Exchange Commission of Zimbabwe (SECZIM) is the primary regulatory authority. Ensure any broker or fund manager you engage is registered with SECZIM before committing funds. The Securities and Exchange Commission of Zimbabwe has noted that over one billion dollars is remitted annually by the Zimbabwean diaspora, and has actively encouraged channelling a portion of those flows into ZSE and VFEX-listed equities rather than purely into consumption. For diaspora investors looking to build long-term wealth at home, the infrastructure to do so — cautiously and with proper advice — now genuinely exists.