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Nqobile Bhebhe, Senior Business Reporter

DIVERSIFIED manufacturing group, Innscor Africa Limited, says plans to migrate to the Victoria Falls Stock Exchange (VFEX) are gathering momentum amid progress toward securing necessary regulatory approvals.

The regulatory processes include approval by shareholders and regulatory authorities such as the Securities and Exchange Commission of Zimbabwe (SECZim).

The company’s board of directors has already approved de-listing from the Zimbabwe Stock Exchange (ZSE) to join the VFEX, which is offering a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.

In a notice to shareholders, Innscor said further details of the transaction will be provided to shareholders and the investing public once all regulatory processes have been finalised.

“Further to the cautionary statement published on 13 December 2022 regarding the approval of the delisting of Innscor Africa Limited from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange, the directors of the company wish to advise all shareholders and the investing public that progress is being made on the regulatory and other matters relating to the transaction,” reads part of the notice.

Innscor’s operations span various sectors of the economy. The group engages in food processing and the manufacture, distribution, and retailing of household commodities and fresh produce.

The US$-denominated VFEX is a subsidiary of the ZSE launched in 2020 as an off-shore biased financial services centre, as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.

Its setting is largely expected to go a long way in also buttressing the Victoria Falls Special Economic Zone.
At its inception, VFEX began trading with leading seed producer and distributor, SeedCo International Limited with mining giant Caledonia Mining, skins and meat processor – Padenga and Bindura Nickel Corporation coming on board later.

One of Simbisa Brands Limited’s’ outlets

Fast food service group Simbisa Brands Limited, Nedbank Zimbabwe, and platinum producer, Karo Mining Holdings, have also listed on the two-year-old bourse.

Food processing giant National Foods Holdings Limited directors have approved the delisting from the ZSE and immediate listing on the VFEX, a move the firm says will improve its capitalisation and enhance its marketability.

Retail and specialty distribution group, Axia Corporation Limited, has also expressed interest to join the bourse.
GetBucks Bank, which also intends to migrate to VFEX, has said negotiations for recapitalisation and the process to shift to VFEX are still in progress.

Experts in the capital markets and mining sector say the exchange has potential to become a game changer in a country endowed with vast mineral resources as it trades in hard currency and therefore a good funding mechanism for the mining sector, which is seen as an enabler for economic growth.