ZW$560m worth of shares lie unclaimed on the CSD platform

  • A number of ZSE investors have not collected their share certificates
  • Majority of shares believed to belong to the insurance and pensions industry
  • Some may belong to people who are now deceased

Harare – Chengetedzai Depository Company says a share portfolio with a value of ZW$560 million (US$6.6 million using the official exchange rate) lied unclaimed on the Central Securities Depository (CSD) at the end of the first quarter of 2021.

This is due to a number of investors on the Zimbabwe Stock Exchange having not collected their share certificates.

While no clear reason has been stated for the poor claiming of the shares, common sense suggests that these may belong to people who have been deceased while heirs may not be aware of their inheritance.

SECZIM believes that the bulk of these unclaimed shares could belong to the local pensions and insurance industry as it is heavily invested in the local bourse.

Insurance and Pensions Commission (IPEC) director, Cuthbert Munjoma admitted to this claim saying “some of the unclaimed shares could be from our industry. IPEC recently traced unclaimed shares from a pension fund that last operated 30 years ago.”

This makes sense considering also the fact that IPEC itself said by the end of 2020 it was holding ZW$616 million (US$7.3 million) in unclaimed pension benefits, 1 900 percent more than the 2019 figure of ZW$31 million.

Chengetedzai won the right to establish the first Central Securities Depository (CSD) company in Zimbabwe in 2010 in a public tender from the Securities Commission of Zimbabwe (SECZIM).

The company operates an electronic book-entry system to record and maintain securities and to register their transfer. Securities are maintained in electronic form in the investor’s account just like how money is kept in the form of electronic credits in any bank account. The system is purely a settlement vehicle for transactions that have been traded on the ZSE and VFEX.

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