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Leonard Ncube

THE rapid growth of the Victoria Falls Stock Exchange (VFEX) has charmed the African Securities Exchanges Association (ASEA) which has said the United States dollar-denominated bourse has vast potential to be among the leading exchanges in the region.

The Government has also expressed satisfaction over the rapid growth of the bourse which has attracted eleven counters since its formation in October 2020.

The VFEX , a US dollar-denominated market established as part of an offshore financial services centre in the resort City of Victoria Falls has seen 11 listings across all sectors of the economy namely giant seed producer and distributor, SeedCo International Limited, mining giant — Caledonia Mining, skins and meat processor, Padenga, Bindura Nickel Corporation, Nedbank Zimbabwe, pan-African fast-food group, Simbisa Brands Limited, Karo Holdings Limited, National Foods Limited, Inscor Africa and African Sun Limited.

VFEX was established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.

The rapid growth of the bourse dovetails with the Government development agenda as it is positioning the VFEX to compete on a global scale by attracting quality listings and bring much-needed foreign investment.

The offshore financial services centre is expected to boost foreign direct investment inflows into Zimbabwe and also strengthen the country’s financial services sector.

An offshore financial services centre is a jurisdiction that makes available financial services to non-residents with the purpose of circumventing aspects of the non-resident’s home country or jurisdiction.

A subsidiary of the Zimbabwe Stock Exchange (ZSE), the VFEX allows listed companies to raise and trade their stock in any convertible hard currency thereby limiting the exchange risk.

It is expected to compete with other offshore financial centres such as one in Mauritius, Rwanda and United Arab Emirates (UAE).

Treasury has expressed confidence in VFEX saying the bourse has vast potential to compete with regional counterparts and attract quality listings.

Speaking in Victoria Falls after the listing of ASL last Friday, ASEA president Mr Thapelo Tsheole said the growth of bourse is a significant development for the Zimbabwe securities sector.

The Zimbabwe Stock Exchange hosted the ASEA conference.
“The growth of the Victoria Falls Stock Exchange is a proud moment for the Zimbabwe Stock Exchange and its a clear testimony to other exchanges that this is possible, it’s happening in Zimbabwe and it can be emulated elsewhere. It is a proud moment especially when they get a listing when every one of us is here,” said Mr Tsheole.

Speaking to journalists after the ASL listing, Environment, Climate, Tourism and Hospitality Industry Minister Nqobizitha Mangaliso Ndlovu who was guest of honour said the fact that companies that have so far listed on the VFEX are drawn from a cross-section of the economy, is testimony to the importance of the bourse.

“From an investment perspective, it’s always a good thing when we have different sectors represented in any stock market because it then allows you to balance your investment portfolio.

“From a corporate perspective, the capital market allows you to raise the much-needed capital and to participate in the foreign currency capital market in the bigger regional and world picture. So to see such several listings and having the first tourism listing is a proud moment for us,” said Minister Ndlovu as he encouraged more tourism players to list.

Speaking in Victoria Falls recently, Finance and Economic Development Minister Professor Mthuli Ncube said VFEX had set a record of being the fastest-growing stock exchange in the world attracting much attention within three years since its establishment.

Minister Ncube has since appointed members of the Victoria Falls International (Offshore) Financial Services Centre board chaired by seasoned banker, Mr Marc Holtzman and this will be the centre to drive foreign investments in the region in terms of capital markets developments.

The Government has said the VFEX will remain a foreign exchange market. -@ncubeleon.