Zimbabwe stock market surges amid economic crisis

Investors are switching to stock to protect their money, as Analysts say Zimbabwe is in one of the worst economic falls to affect the country in decades.

The country has been struggling with financial stress since electing President Emmerson Mnangagwa in July, in hopes the country would return to prosperity upon Mnangagwa's rule.

Zimbabwe's Finance Minister announced a new stabilisation program, that economists say coupled with foreign currency shortages and a ballooning debt, has pushed Zimbabwe in to economic crisis.

They fear the current crisis, could mimic the collapse seen a decade ago when Zimbabwe’s hyperinflation reached 500 billion %, according to the International Monetary Fund.

Earlier this month, the Zimbabwe government also announced it would de-dollarize, which analysts predict could have hastened the onset of the financial crisis.

Amid the uncertainty, investors have seen stocks as a safe haven, with the main market index hitting a record 699.89 points on Thursday, extending gains by 18%, according to official data.

Meanwhile businesses are closing due to the dollar crunch, and investors are snapping up shares, as locals stock up on basics like cooking oil, sugar and rice amid uncertainty.

In recent reports, locals have been queuing to buy petrol for hours, in fear of shortage as numerous local businesses shut their doors.

KFC fast-food chain announced on Thursday it would shut down its restaurants across the country in fear the financial crisis will deepen.

According to a statement released by KFC, the fast food outlets “are unable to continue to trade due to the current pressure on the country’s economy. The currency challenges have affected our operations and supply and we are exploring various ways to reopen our restaurants soon”.

Zimbabwe Stock Exchange’s industrial index has gained 55% since Monday, while market capitalisation jumped to $22.9 billion from 19.5 billion on Wednesday.