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Kunofiwa Tsaurai, NM Odhiambo



This paper takes stock of the achievements, the trends, as well as the challenges facing the stock market development in Zimbabwe. The study has been motivated by the recent debate on the role of stock market development in economic growth in developing countries. Apart from highlighting the role of stock market development, as well as the efficacy of the stock market in bolstering economic growth in Zimbabwe, the study also pinpoints some of the factors that limit the stock market development in Zimbabwe. The findings of this study show that the experience of Zimbabwe with stock market development, just as in many other developing countries, is mixed. In particular, the positive influence of stock market development on savings and investment remains low in Zimbabwe. While stock market development has been increasing, the country’s gross domestic savings and investment have been low and subsiding. This suggests that Zimbabwe’s gross national savings could be stock market development inelastic.

Keywords: Capital Market, Zimbabwe, Zimbabwe Stock Exchange, Savings, Investments

How to cite this paper: Tsaurai, K., & Odhiambo, N. M. (2012). The dynamics of capital market development in Zimbabwe. Corporate Ownership & Control, 9(2-3), 355-363.