Simbisa becomes 6th VFEX counter

05 Dec, 2022 - 00:12 0 Views
Simbisa becomes 6th VFEX counter Finance and Economic Development Minister, Professor Mthuli Ncube

The Chronicle

Leonard Ncube, Victoria Falls Reporter

FAST-FOOD group, Simbisa Brands Limited, became the 6th counter to officially list on the foreign currency-denominated Victoria Falls Stock Exchange (VFEX) on Friday.

The group’s management has expressed excitement at being the first hospitality business to list on the two-year-old bourse, which is domiciled in the tourism capital.

Its listing comes a week after financial services group Nedbank Zimbabwe also joined the bourse, which has attracted giant seed producer and distributor, SeedCo International Limited, mining giant Caledonia Mining, skins and meat processor Padenga and Bindura Nickel Corporation.

Finance and Economic Development Minister, Professor Mthuli Ncube presided over the official listing ceremony in the resort city where he applauded the VFEX team for working tirelessly to ensure the commendable success of the exchange.

“My ministry made the VFEX a distinctive future jurisdiction market by making it an exclusive investment destination to both local and foreign investors. The current rules and regulations on the VFEX go a long way in making the market irresistible to foreign capital,” he said.
Minister Ncube said Treasury will continue to support VFEX in order to make it a preferred destination for investors and companies.

He said the establishment of VFEX is at the core of initiatives towards the establishment of an Offshore Financial Services Centre in the country. Minister Ncube said development of robust financial systems with the capacity to mobilise both domestic and foreign capital for investment was critical as the country drives towards achieving an upper middle-income status by 2030.

“I’m very thrilled by the decision of Simbisa Brands Limited to use this VFEX platform to enhance its growth strategy. This really shows that capital markets play a pivotal role towards equity-based financing solutions for the economy, thereby accelerating economic transformation,” said Prof Ncube.

simbisa brand

He said economic development is tied to developed financial markets, which assist in resource mobilisation, risk reduction, price discovery and employment creation.

Simbisa Group chairman, Mr Addington Chinake, said the company has taken a bold step that will usher in a new period of growth and development by listing on VFEX.

He applauded the Government for establishing an offshore financial centre in Victoria Falls and introducing various incentives for both local and foreign investors.

“It’s important for a nation to think globally and act locally in order to push through strong economic transformation. The successful listing of Simbisa does not only build a solid foundation of long-term development of the group but also marks the beginning of a new phase of strong growth for the group in all respects,” said Mr Chinake.

He said the listing is in line with the vision of creating value for shareholders and customers in all markets.

Previously a subsidiary of diversified Innscor Africa Group, which opened operations in Zimbabwe in 1987 and listed on the Zimbabwe Stock Exchange in 1998, Simbisa Group operates more than 611 outlets in nine countries across Africa and believes listing on VFEX is a natural fit for its Pan African focus.

Mr Chinake commended Government for the economic stability ushered in by the recent tweaking of fiscal and monetary policy, which he said enables the group to expand footprint in the region as well as being a beacon for foreign direct investment inflows into Zimbabwe.

“Having become the first company to list on an automated Zimbabwe Stock Exchange in 2015, Simbisa has today become the first hospitality company to list on the VFEX. It listed on ZSE during the multi-currency era in 2015 at US$14,32 cents and exited the same exchange last week at US$38,83 cents having been achieved during the bull run this year,” said Mr Chinake.
He said listing on VFEX will allow an efficient third-party United States dollar valuation of Simbisa.

This will also give the group an opportunity to raise expansion capital in foreign currency from wider and international markets.

The VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) launched in 2020 as an off-shore biased financial services centre.

It is 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.

VFEX was established as a Special Economic Zone as provided by the Statutory Instrument 196 of 2020.
ZSE chairperson, Mrs Caroline Sandura, said Simbisa was migrating from ZSE to VFEX to continue to create value for its employees and shareholders. She said the VFEX thrust is to increase the pool of securities on the exchange.

Government has come up with a raft of incentives in order to promote listings on VFEX and this should be complemented by increased productivity and investment.
—  @ncubeleon

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