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Leonard Ncube, Victoria Falls Reporter
THE Victoria Falls Stock Exchange (VFEX) has signed a Memorandum of Understanding (MoU) with the Dubai Gold and Commodities Exchange (DGCX) to strengthen bilateral co-operation as well as exchange knowledge around commodities trading.

This might result in establishment of a gold market in Zimbabwe, the only second African country to seek an alliance with the DGCX after the Financial Markets Regulatory Authority in Sudan.

VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) and was opened to trade in foreign currency with target mostly on luring mining companies to invest in the local bourse.

DGCX is a leading derivatives exchange centre and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement.

ZSE and VFEX chief executive, Mr Justin Bgoni, and his DGCX counterpart, Mr Les Male, signed the one-year agreement in Dubai during a recent visit of a high-level Zimbabwean ministerial delegation, which also included the Minister of Finance and Economic Development, Professor Mthuli Ncube.

As part of the agreement, DGCX will extend technical support, knowledge and skills to VFEX with the aim of establishing an international commodities exchange in Zimbabwe.

The VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework.

In a statement, Mr Bgoni said the collaboration will also pave the way for possible investments by DGCX into the VFEX commodities exchange.

“On behalf of the Victoria Falls Stock Exchange, I am pleased to be part of this momentous occasion of the signing of the Memorandum of Understanding between our exchange and the Dubai Gold and Commodities Exchange,” he said.

“We are looking forward to a fruitful exchange of ideas and technical know-how that should culminate in us being able to replicate the success of the Dubai Gold and Commodities Exchange in our own country and under the proposed Victoria Falls Stock Exchange-driven commodities exchange.”

Mr Male said the partnership builds on CGCX’s expanding international footprint and represents another opportunity for it to build stronger inroads into Africa, a rapidly growing market with enormous potential. “We are delighted to forge a partnership with the Victoria Falls Stock Exchange as part of our wider strategy to strengthen commodities trading across Africa. We are confident that our deep knowledge and expertise will help bring value to VFEX as they kick start the Offshore Financial Services Centre (OFSC) for the special economic zone (SEZ) in Victoria Falls,” he said.

The DGCX Group owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC), regulated by the Securities & Commodities Authority (SCA).

It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA).

The DGCX’s strategic geographic location in Dubai serves as a unique global window for traders and investors. DGCX has over 100 members across the world. — @ncubeleon.