Zimpapers Logo

Nqobile Bhebhe, Senior Business Reporter

ZIMBABWE’S drive to lure international investors and promote local capital market investments in Europe is expected to go a gear up during the capital markets conference scheduled for London, United Kingdom in April.

The capital markets sector has untapped potential to vastly contribute to economic growth and job creation through increasing productive sector capacity. 

The Financial Markets Indaba would co-host the planned Zimbabwe Capital Markets Conference in conjunction with the Zimbabwe Embassy in the United Kingdom in London on 21 April.

According to the organisers, the aim of the Zimbabwe Capital Markets Conference is to mobilise investments by convening the diaspora, leading global institutional investors, corporate leaders, and industry experts to explore sector and market trends and identify significant investment opportunities.

“The conference serves as an opportunity to inform the diaspora and demystify complexities and myths that surround participating in financial and capital markets and in turn encourage individuals from all walks of life to invest on the local markets, including stock exchanges,” reads a statement from Financial Markets Indaba.

Recently, there has been heightened interest in investing in local stock exchanges – the Zimbabwe Stock Exchange (ZSE) and Victoria Falls Stock Exchange (VFEX).

Zimbabwe Stock Exchange Limited (ZSE)

According to the African Financials’ sub-Sahara Africa Top 30 Companies report, the ZSE fared well in its performance compared to its regional peers last year in US dollar terms.

The report says regional stock markets, excluding South Africa’s, rose by an average 4,5 percent in US dollar terms in December 2022.

ZSE is the backbone of Zimbabwe’s capital market with a history dating back as far as 1896. It is one of the oldest and most highly diversified exchanges in Africa given listings spanning all key sectors of the economy.

The advent of VFEX, a subsidiary of ZSE, as a financial offshore centre that trades in foreign currency and is earmarked to drive the special economic zone in Victoria Falls, has further heightened activity.

Financial Markets Indaba said the country’s capital markets continue to evolve and consensus amongst capital markets players is that the sector has an untapped potential contribution to economic growth.

It described VFEX as a game changer adding that Government expects the bourse to emerge as a competitive global platform to raise capital and this will transform the country’s tourism capital into an attractive Offshore Financial Services Centre.

The VFEX has remained largely stable as it is not susceptible to currency volatility and other challenges. 

The bourse experienced rapid growth in the last quarter of 2022 injecting much-needed confidence and cementing the country as a safe investment destination.

By the end of the year 2022, there were eight counters trading on the bourse, with a handful of pipeline migrations from the main bourse – the ZSE.

VFEX hosts Bindura Nickel Corporation, Caledonia Mining Plc, Karo Bond, National Foods Holdings, Nedbank ZDRs, Padenga Holdings Limited, Seed Co International and Simbisa Brands Limited.

Last week, ZSE and VFEX chief executive officer, Mr Justin Bgoni said VFEX registered an 18-fold jump in trade volumes to close 2022 on US$12 million compared to US$619 000 in the prior year with officials saying they remain bullish on the prospects of VFEX as a viable exchange.