At the end of July, one of the world’s most volatile economies produced one of the year’s most arresting financial statistics. The Zimbabwe Stock Exchange had delivered a 68.5% return in US-dollar terms since the beginning of 2026, placing it ahead of every other African market tracked by African Markets.
Nigeria followed with a dollar return of 66.9%, Ghana reached 57.6%, while Tunisia and Tanzania gained 46.3% and 40.5% respectively. Over the same period, the S&P 500, the most widely followed measure of large American companies, had risen by about 9.4%.
The ZSE All Share Index ended 2025 at 277.86 points and stood at approximately 480.8 points on July 31. That represents a local-currency increase of about 73%. Over the same period, the Reserve Bank of Zimbabwe’s official exchange rate moved from 25.9807 Zimbabwe Gold, or ZiG, to the US dollar to 26.6845.
Converting the index at those official rates produces a dollar return of 68.47%. To capture that return, an investor would have needed to secure ZiG at a usable rate, buy a portfolio close to the index’s composition, find willing sellers, pay brokerage and custody charges, and later convert the proceeds into hard currency. Taxes, exchange spreads and capital-repatriation procedures would reduce the final amount.
Foreign participation is nevertheless increasing. It rose from 15.4% in the first quarter of 2026 to 26.5% in the second quarter, according to the ZSE’s quarterly figures. The value of foreign trades increased by 153.9% to ZiG743.6 million, equivalent to about $27.7 million.
Zimbabwe’s rally reflects genuine changes in market sentiment. Annual inflation had fallen to 3.2% by July, the ZiG was relatively stable at the official rate, and companies earning hard currency became increasingly attractive. Mining, tobacco, telecommunications, financial services and consumer companies also benefited from stronger commodity prices and improving economic conditions.
An African equity resurgence
Zimbabwe’s performance forms part of a wider recovery across African capital markets. A review of 17 African exchanges by Mansa Markets found that 11 of the 16 markets for which a reliable dollar conversion was available outperformed the S&P 500 during the first half of 2026.
Ghana led the standardised half-year comparison with a dollar return of 62.2%. Nigeria delivered 55.7%, Tunisia 47.5%, Rwanda 39.7% and Tanzania 37.5%. The regional BRVM, which serves eight West African countries, gained 30.2% in dollars.
Currency movements influenced several of these results as much as share prices did. Zambia’s All Share Index declined by 0.5% in kwacha terms during the first half. The currency appreciated strongly enough to give a dollar-based investor a return of approximately 22.9%.
South Africa travelled in the opposite direction. The Johannesburg Stock Exchange All Share Index fell 4.8% in rand terms and 3.5% in dollars during the first half, although it recovered part of that decline later in the year. The JSE remains Africa’s largest and deepest stock market, with a far wider selection of companies, investment products and international participants than Zimbabwe.
The difference between Johannesburg and Harare illustrates how market size and short-term performance can diverge. A smaller exchange can produce a spectacular percentage gain from a low base. A larger exchange usually offers better liquidity, stronger price discovery and easier entry and exit.
Many African indices are concentrated in banks, telecommunications companies, mining houses and consumer groups. A rally in a handful of large counters can lift an entire market while small enterprises continue to struggle for working capital.
A stock market designed for entrepreneurs
In July, Zimbabwe launched the Zimbabwe Entrepreneurship Exchange, known as ZEEX, in Bulawayo. The platform is regulated by the Securities and Exchange Commission of Zimbabwe and operated within the ZSE Holdings ecosystem, which also includes the ZSE and the US-dollar-denominated Victoria Falls Stock Exchange.
ZEEX has been designed around two stages. Businesses can begin on its private market, where sponsoring brokers and corporate-finance advisers help them structure private equity, debt or another suitable instrument. Companies that develop stronger financial records and governance can progress to the public market, where their securities may be traded by retail and institutional investors.
The most successful businesses could eventually graduate to the ZSE or VFEX. This creates a capital ladder stretching from private fundraising to a full public listing.
Zimbabwe’s 2025 Economic Census found that small and medium-sized enterprises account for 76.1% of businesses, generate an estimated $14.2 billion in annual revenue and employ more than 70% of the workforce. Many remain dependent on personal savings, family money, informal lenders or bank loans secured against property.
That financing structure penalises entrepreneurs whose companies have viable customers and promising cash flows but few assets to pledge. ZEEX proposes that businesses should also be evaluated on the strength of their management, financial performance, business model and growth prospects.
Zimbabwe’s search for new listings
ZEEX arrives during a difficult period for Zimbabwe’s traditional exchange. Several companies with substantial US-dollar revenues have migrated from the ZSE to VFEX, where securities are priced and traded in dollars. VFEX has become increasingly attractive to businesses seeking hard-currency valuations and investors concerned about exchange controls.
The departure of telecommunications company Econet Wireless contributed to a decline of about 42% in the ZSE’s market capitalisation by the end of April 2026. By that stage, VFEX had overtaken the older exchange in total market value.
Lessons from other entrepreneur exchanges
Zimbabwe is entering a field with several international precedents. The London Stock Exchange’s Alternative Investment Market, or AIM, has helped more than 4,000 companies raise over £136 billion since 1995. It became one of the world’s most prominent markets for smaller companies, supported by nominated advisers, specialist brokers, tax incentives and a large investment industry.
AIM has also suffered a sustained contraction. Eighty-nine companies left the market in 2024, while only 18 joined. Weak liquidity, listing costs, poor valuations and declining investment in British small-cap companies have persuaded some businesses to delist or accept private takeovers.
Canada’s TSX Venture Exchange provides a more explicit graduation route for young companies that later qualify for the Toronto Stock Exchange. Its strongest record has been in industries such as mining and energy, where Canada has experienced analysts, investors and advisers capable of evaluating early-stage projects.
In South Africa, the JSE launched its Alternative Exchange, or AltX, in 2003 for established businesses that were not ready for the main board. By December 2021, 140 companies had listed, R74 billion had been raised, and 40 had graduated to the main board, according to JSE figures.
Kenya’s Growth Enterprise Market Segment was launched in 2013 with flexible rules for smaller firms, but several companies entered through listings by introduction, which made existing shares tradable without raising new capital. Low investor participation subsequently produced limited liquidity and weak price discovery.
The United States has approached small-business investment through regulated crowdfunding. By the end of 2025, companies had filed 9,461 offerings under Regulation Crowdfunding and reported raising approximately $1.55 billion, according to the US Securities and Exchange Commission. Companies can raise up to $5 million in 12 months through registered intermediaries, while investment limits and disclosure requirements are intended to protect inexperienced investors.
How investors actually gain access
An investor seeking exposure to an African stock market normally buys shares, an exchange-traded fund, a managed fund, a bond or a real estate investment trust through a licensed broker.
South African investors can obtain broad JSE exposure through locally listed index funds such as the Satrix Capped All Share ETF, which covers about 99% of the eligible JSE market while limiting the weight of individual companies. Investors with access to American markets can use products such as the iShares MSCI South Africa ETF.
Zimbabwean shares can be purchased through licensed brokers, C-Trade or ZSE Direct. C-Trade advertises access for Zimbabweans living abroad, although its published registration guidance has required a Zimbabwean bank account, identification and proof of residence. Zimbabwe also has listed exchange-traded funds, but the available products do not provide a perfect replica of the All Share Index.
VFEX Direct gives retail investors access to Zimbabwe’s dollar-denominated market. Its published requirements include a passport or national identity document, proof of residence and a foreign-currency account with a Zimbabwean commercial bank. Those conditions mean that online access does not automatically solve the difficulties of cross-border funding.
Elsewhere on the continent, the African Exchanges Linkage Project is connecting brokers across 11 markets, including Johannesburg, Nairobi, Nigeria, Ghana, Egypt, Morocco, Mauritius and the BRVM. An investor can place an order through a participating broker, which routes it to a sponsoring broker in the destination market.
