CHENGETEDZAI Depository Company Limited (CDC) has recorded progress in reducing unclaimed shares following its public awareness campaigns educating investors on how to reclaim their assets.
“The last quarter of the year ending December 31, 2024 saw a total of 219 certificates being claimed valued at ZiG1 933 385,45 and US$5 417,77 respectively,” CDC chief executive officer Prosper Mutorogodo told busingessdigest in an interview.
“As at December 31, 2024, the unclaimed shares portfolio was valued at ZiG78 785 404,90 and US$637 243,86 respectively.”
This accounted for 1,73% of the total unclaimed securities, which were valued at nearly US$4,5 million before the campaign.
Despite these recoveries, a substantial amount of unclaimed assets remains. As of December 2024, CDC still held US$629 313 and ZiG102 504 188 (US$3,82 million) in unclaimed securities, all held in the Investor Protection Fund.
The fund provides compensation to protected investors for losses suffered as a direct result of a licensed contributor to the fund being unable to meet their liabilities through insolvency, malpractice, or other causes.
CDC is a limited liability company incorporated in terms of the laws of Zimbabwe and was formed to establish and operate a central securities depository for Zimbabwe’s securities industry.
Mutorogodo added that the reason behind the low number of claims was mostly due to the slow submission of claims due to the stringent “know your client” requirements.
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“Webinars and online meetings are continuously being held with key interest groups as well as social media campaigns,” he said.
“Closely associated with this effort is our ongoing campaign to encourage all types of investors to open Central Securities Depository accounts to enhance market vibrancy. We are also planning to engage traditional media, such as radio, television, and newspapers, to further disseminate this message.”
He said the response had been overwhelmingly positive, but more effort was needed to reach schools, colleges, universities, and other targeted groups focused on youth and small-to-medium enterprises (SMEs).
