VFEX projects a good second half of the year

The Victoria Falls Stock Exchange (VFEX) is projected to have a fruitful second half of the year and going forward aiding the country in attracting foreign direct investment (FDI).

This comes as the exchange has already experienced an eventful first half of 2023 with several listings made on the US dollar denominated exchange as companies seek to raise capital in hard currency.

A commodities exchange as is one of the products the exchange has planned for the expansion of the market before year end, while an Exchange Traded Fund (ETF), debt instruments and Real Estate Investment Trust (REIT) will also debut on the US dollar denominated exchange.

The Victoria Falls, where the VFEX is domiciled, is a special economic zone, which also presents an important opportunity for Zimbabwe to attract foreign investment and create a hub for financial services in the region.

ZSE chairperson Caroline Sandura said the exchange would ride on the positive momentum which has seen it grow to 14 listed companies in three years of its launch.

“This has indeed been a tremendous year for VFEX, we are proud of the growth of the VFEX, having welcomed six issuers in the first half of the year,” she said at the Zimplow listing ceremony in Victoria Falls recently.

“As the VFEX, we will continue to be innovative and introduce different securities that aid in deepening our market. The VFEX team is working tirelessly on new listings and diversifying our products and services in order to create value for all participants, stakeholders and investors at large,” she said.

The exchange was launched in the resort town of Victoria Falls, to trade in foreign currency, as initiatives to help companies raise hard currency for their expansion projects, as well as address the challenges that were being experienced on the primary bourse – the ZSE such as foreign repatriation.

As such, the VFEX is also expected to drive the strategy of turning the resort town into a financial services hub for the region, with issuers attracting both local and foreign investors.

Sandura said the exchange forge ahead with this plan and the recent listing of engineering firm Zimplow Holdings Limited, she said, was also an indication of the confidence the exchange continues to garner from businesses.

“We are confident that the VFEX, in partnership with our Issuers, will strategically position Victoria Falls as a leading financial services center in Africa. The VFEX is committed to creating a vibrant and dynamic capital market in Zimbabwe.

“The VFEX has a critical role to play in promoting investment and economic growth in Zimbabwe,” she said.

Apart from migrations from the primary bourse, the exchange is expected to attract other counters on the back of its several incentives to attract investors such as trading, clearing, and settlement on or offshore in US dollar, enabling investors to efficiently repatriate their dividends.

There is also enhanced marketability of the listed companies regionally, which can lead to improved flexibility in raising external capital and funding for regional expansion as well as lower trading fees for investors.-ebusinessweekly