• Saw  ZWG15.66m surplus but securities levy income fell 68% YoY after major delistings, forcing the regulator to pivot toward licence fees, investment levies and new commercial services
• It is building regulatory frameworks for carbon credit markets, tokenised assets, and an e-KYC platform to be commercialised as SaaS
•  The strategy creates opportunities for investment managers, fintechs, project developers and banks

Harare- The Securities and Exchange Commission of Zimbabwe is repositioning itself for a future where capital market growth is driven by digital assets, carbon finance and financial technology as declining securities levy income reshapes the economics of market regulation. While the Commission reported a strong financial performance for the six months to June 2026, Acting Chief Executive Officer Commissioner Tichaona Mushambadope outlined a strategy that extends well beyond balance sheet performance and into the next phase of Zimbabwe’s financial market development.

SECZim recorded a year to date surplus of ZWG15.66 million, comfortably exceeding its ZWG1.10 million budget and improving substantially from the ZWG1.32 million achieved during the corresponding period last year. Operating efficiency strengthened as the cost to income ratio improved to 70% from 90% while the staff cost ratio declined to 38%, well below the Commission’s internal ceiling of 60%. A ZWG23.2 million short term investment portfolio further strengthened liquidity, leaving the regulator in a solid financial position heading into the second half of the year.

The financial performance, however, sits alongside a structural challenge that is changing how Zimbabwe’s capital market institutions generate income.

Management expects securities levy income to remain below pre delisting levels following the migration and delisting of several market heavyweights. June securities levy collections declined 68% year on year, forcing the Commission to revise its revenue outlook and place greater emphasis on licence fees, investment management levies and new commercial services.

That development extends beyond SECZim’s own finances. It illustrates how the migration of large issuers changes the economics of the entire capital market ecosystem. Every major company that exits the domestic exchange reduces market liquidity, trading activity, exchange revenue and regulatory levies simultaneously. The regulator’s financial statements therefore provide an indirect measure of how shrinking listed market depth affects institutions that support the market.

The Commission also acknowledged that government grants contributed 34% of June revenue, allowing income to remain ahead of budget despite weaker levy collections. While grant funding provides near term stability, management recognised that long term financial sustainability requires a broader base of market generated income.

Rather than relying solely on tighter cost controls, SECZim has chosen to expand the markets it regulates and the services it provides.

Acting Chief Executive Officer Commissioner Tichaona Mushambadope said the Commission is developing regulatory frameworks for carbon credit markets, tokenised assets and digital financial infrastructure while building an electronic Know Your Customer platform that will be commercialised as Software as a Service for regulators and financial institutions.

Viewed individually, each initiative addresses a different market opportunity. Viewed together, they reveal a deliberate redesign of SECZim’s operating model.

Carbon markets create a new class of regulated financial assets by converting verified environmental outcomes into tradable investment instruments. Zimbabwe possesses significant forestry, agriculture and renewable energy resources capable of generating carbon credits. A transparent regulatory framework has the potential to attract climate finance, broaden investment opportunities for institutional investors and create additional channels through which businesses can monetise environmental assets.

Tokenisation represents an equally significant opportunity. Digital representation of traditional assets such as property, infrastructure, commodities and securities allows ownership to be divided into smaller investment units, improving liquidity while reducing transaction costs. Across Africa, regulators are increasingly examining digital asset frameworks as investors demand more efficient mechanisms for capital formation. SECZim’s work positions Zimbabwe to participate in that transition instead of responding after regional markets have matured.

The Commission’s proposed electronic Know Your Customer platform carries implications beyond regulatory compliance. Customer verification remains one of the highest recurring compliance costs across banks, investment managers, insurers and capital market intermediaries. A shared digital identity platform reduces duplication, shortens onboarding times, strengthens anti money laundering controls and creates a recurring technology revenue stream that is independent of securities trading volumes. For SECZim, regulatory technology becomes both an efficiency tool and a commercial business.

Together, these initiatives redefine the Commission’s role within Zimbabwe’s financial system. Carbon markets expand the range of investable assets. Tokenisation modernises how those assets are issued, traded and owned. Digital identity infrastructure enables those markets to operate efficiently. Instead of depending primarily on statutory levies generated by listed equities, SECZim is building the infrastructure required for the next generation of financial markets.

The strategy follows a broader continental direction. Regulators across Africa are expanding beyond traditional securities supervision into fintech regulation, digital assets, sustainable finance and innovation frameworks as capital markets evolve. Zimbabwe’s strategy places SECZim within that broader transition while leveraging domestic strengths in natural capital and financial technology to create new areas of market development.

Execution will now determine whether the strategy translates into sustainable financial performance. SECZim projects full year expenditure of ZWG85.1 million, approximately 4% below budget, although expenditure during the first half exceeded the half year budget by 21%. Maintaining expenditure discipline while commercialising new revenue streams will determine whether today’s accounting surplus evolves into a more resilient long term funding model.

The implications extend across the financial sector. Investment managers have an opportunity to prepare products linked to emerging asset classes. Fintech firms developing digital custody, tokenisation and compliance technology are likely to benefit from an increasingly supportive regulatory environment. Project developers in forestry, mining, agriculture and renewable energy stand to gain from clearer carbon market rules. Financial institutions that integrate digital identity systems early will reduce compliance costs and accelerate customer acquisition as common verification standards emerge.

The Commission’s first half performance therefore marks more than a successful financial period. It represents the beginning of a structural shift in Zimbabwe’s capital markets. The institutions that create, regulate and intermediate capital are moving beyond dependence on listed equities towards a broader ecosystem built around digital infrastructure, alternative assets and technology enabled financial services. SECZim is positioning itself to become the architect of that ecosystem instead of simply supervising it.

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