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Launched on October 23, 2020, the Victoria Falls Stock Exchange (VFEX) is growing really fast.
On Friday, it welcomed its eighth counter, food giant, National Foods Limited.

It joined hybrid seed producer and distributor, SeedCo International Limited, New York and London-listed gold miner, Caledonia, crocodile skins and meat processor, Padenga, Bindura Nickel Corporation, Nedbank Zimbabwe and pan-African fast-food group, Simbisa Brands Limited. A bond by a unit of Johannesburg-traded metals producer Tharisa, Karo Holdings Limited is on VFEX as well.

Caledonia Mining Corporation

The Government introduced VFEX in a bold move that also looks into the future.  It recognised that the economy had been short of foreign currency for a long time, which made it difficult for companies to finance importation of critical raw materials, spares, machinery and so on.  It recognised too that some local companies needed to raise money to finance their operations but had too few platforms for them to be able to do that effectively.

It recognised that some companies, especially large ones with a regional or global exposure, needed the flexibility that comes with trading in the US$.  Also, the Government noted that some firms needed the predictability that comes with trading in the US$.  More importantly authorities noted the need to attract foreign investment.
A VFEX listing gives those listed an international feel as they trade exclusively in a global currency.  It unlocks value as well.

One of Simbisa Brands Limited’s’ outlets

The Zimbabwe Stock Exchange (ZSE) does not effectively meet the foregoing requirements, authorities must have realised, hence they decided to launch VFEX.
And in two short years, large companies are enjoying the benefits of being on that bourse.  In addition to the eight, many more such as Innscor, Get Bucks and SeedCo Limited are on the queue.

Speaking at National Foods’ listing on Friday, Industry and Commerce Minister Dr Sekai Nzenza, the guest of honour, was encouraged, as we are, by the exchange’s tremendous growth over the past two  years.
“This exemplifies the primary function of our capital markets to mobilise and channel investment capital into productive sectors of the economy and create downstream opportunities for the prosperity of the nation,” she said.

The company’s board chairman Mr Godfrey Gwainda said:
“Although our current focus is to capitalise on the many opportunities we see on the local market, we believe that our presence on the VFEX will facilitate easier access to possible regional opportunities in the long run.”
Indeed, National Foods and its peers on VFEX made good decisions to list there. We look forward to those that have publicly expressed their intentions to delist from ZSE and move over to Victoria Falls doing that this year.  We also expect even unlisted companies to pick VFEX for their first listings.

Industry and Commerce Minister Dr Sekai Nzenza

As much as VFEX was introduced to serve local firms, it is an outward-looking platform as well.  Because of that, we expect many more companies which might not have operations locally to utilise it to raise funding.  Caledonia is listed in New York and London, but it does not have mines there.  Its mines are in Zimbabwe – Blanket, Billboes and so on.  We, therefore expect other companies from abroad and not necessarily having operations here, to take advantage of VFEX, if possible.
Managers at VFEX are therefore encouraged to intensify their marketing initiatives not only on the local market, but abroad as well so that the profile of that market becomes more and more international as more global names list there.