Leonard Ncube, Online Reporter
INDIVIDUALS cannot list on the Victoria Falls Stock Exchange (VFEX) while the Zimbabwe Stock Exchange (ZSE) is exploring possibilities of opening up for small to medium enterprises (SMEs) that meet listing conditions.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) and was launched in 2020 as part of efforts to attract global capital, help companies raise capital in foreign currency and restore foreign investor confidence in Zimbabwe’s capital markets.
It is the only exchange in Africa trading in United States dollars. It was established as a pioneer offshore financial services center by the Government.
There have been questions from members of the public if individuals can be able to list on the stock exchange. Responding to the questions while addressing journalists soon after the listing of Axia Corporation Limited on the VFEX, ZSE chief executive Mr Justin Bgoni said some countries have allowed SMEs to list on the stock exchange despite the risks.
“Individuals no, companies yes. There is a set of rules for listing and if you are an individual just look at the conditions of listing and check if you are listable.
“There is a minimum in terms of money and shareholding and individuals will not because they need to have a memorandum and articles of association to determine how the group is run.
But I think the question you are asking is very important in terms of how we can facilitate SMES to list on the stock exchange.
This is one thing we should be asking our Minister of Finance,” said Mr Bgoni. Retail and specialty distribution group, Axia Corporation Limited, holding company for TV Sales & Home, Transerv and Distribution Group Africa (DGA) officially listed on the VFEX to become the 10th counter on the United States dollar denominated bourse.
Several firms are queuing to list on the foreign currency-denominated VFEX.