Zimbabwe`s fixed-income market is poised for a rebirth, following a protracted absence in the southern-African country`s financial markets. The last bond trading activity was in 2001, coinciding with the start of economic turmoil in the country,spanning over a decade – a period now known as the “lost decade.” During this time, together with other economic sectors, Zimbabwe`s debt market was one of the many casualties, eventually capitulating around 2001. Before that, Zimbabwe had a robust fixed-income market with significant bond issuances by government and local authorities in the 1990s. In recent times,Zimbabwean companies have had to resort to short-term and often expensive funding like bank loans. However, an acute liquidity crunch and the lack of cheap loans in the economy, has made this into a near herculean task for most Zimbabwean companies facing working capital shortages. These companies are also in dire need of capital for retooling. Even with the adoption of t...
Economics, Business and Finance