Zimpapers Logo

The Victoria Falls Stock Exchange (VFEX) is clearly growing, just two years after its launch.
It welcomed its fifth listing — Nedbank Group Limited Zimbabwe (Nedbank) — on Friday.

The financial institution joins older listings — seed maker, SeedCo International Limited, mining giant Caledonia Mining, crocodile skins and meat processor Padenga and mining group, Bindura Nickel Corporation.

The VFEX, a subsidiary of the Zimbabwe Stock Exchange (ZSE) was unveiled in 2020 as an off-shore financial services centre. Through VFEX, the Government wants to attract more foreign investment while easing the ability of local people and companies to raise funds or invest on a platform with a wider reach.

Nedbank came on board shortly after Cyprus-headquartered, chrome and platinum group metals (PGMs) miner, Tharisa launched a bond to raise US$50mn on VFEX. Shortly, more companies will list on the market including fast-moving consumer goods firm, Simbisa Brands. Another food giant, National Foods is on its way to the Falls as well. Financial services company Getbucks has, too, expressed its intention to do the same.

In addition, the Government recently indicated it would launch a bond to raise a sum likely to be in the region of US$3 billion that will be used to pay compensation to white former farmers. December has been cited as the month during which the instrument could be open for subscription on the bourse.

Indeed, VFEX is an attractive platform to raise funding or for investors to participate on given the incentives that the Government put in place.

Investors are freer to move their cash in and out of the country than they could if they had put their money on the ZSE. The tax obligations are lighter on VFEX than what applies on the ZSE. Investors have the advantage of transacting in a more stable currency, the US dollar, instead of the local currency which has suffered a few challenges in recent years, though is recovering strongly.

Finance and Economic Development Minister, Mthuli Ncube recognises the growth of VXEF as well as a future that looks bright.

“I’m happy to be witnessing this rapid growth of the Victoria Falls Stock Exchange, which was established in 2020 as a Special Economic Zone as provided by the Statutory Instrument 196 of 2020,” he said.

“Nedbank Group Limited becomes the 5th company to list on the exchange and the listing comes at a time when hopes for the revival of the economy are high. It’s a momentous occasion for a young stock exchange, which in my view has exceeded all expectations.

Finance and Economic Development Minister, Professor Mthuli Ncube

I’m not aware of this kind of record being demonstrated anywhere in this African continent in terms of the speed of development of capital markets.”

VFEX has strong names. Before Caledonia listed there, its shares were already trading on the New York and London stock exchanges. This means that the mining firm is now listed on three exchanges.

You cannot talk about African agriculture without mentioning one of the continent’s biggest seed breeders and supplier, SeedCo. Padenga’s Kariba Crocodile Farm, is the country’s oldest habitat of farmed the Nile crocodile.

Padenga is one of the world’s leading suppliers of premium quality crocodilian skins, accounting for nearly 85% of the supply of Nile crocodile skins to high end luxury brands globally.

The confidence that Tharisa has in VFEX is encouraging given its profile in the global chrome and PGMs sectors and its massive presence in South Africa. Therefore, Nedbank is in great company.

We are sure Tharisa will succeed in raising the money that it wants to help develop its PGMs prospect, Karo on the northern end of the Great Dyke. We can’t wait for the Government debt instrument debuting on VFEX.

Most want VFEX to succeed, to take its position on emerging capital markets of the world. They expect more listings on the market.

VFEX, like other markets, is a barometer of the economy, so its success is the success of the national economy as it marches towards upper middle-income status in the next eight years.