Zimbabwe Stock Exchange Holdings is set to launch a Venture Board on the Victoria Falls Stock Exchange aimed at supporting junior and exploration-stage mining companies to raise capital, as the bourse moves to deepen market activity and tap into Zimbabwe’s growing mining sector.Zimbabwean cultural products
A venture board in capital markets serves as a specialised governing body or exchange segment designed to provide high-growth, early-stage, or junior companies with access to capital, while offering investors a regulated environment to invest in high-risk, high-reward ventures.
ZSE Holdings chief executive Mr Justin Bgoni said in an interview that the new board will be introduced during the first half of the year in collaboration with key stakeholders, with an initial focus on the mining and natural resources sectors.
“We are working on establishing the Venture Board, which will serve as a dedicated capital-raising platform for junior and exploration-stage companies, with an initial focus on the mining and natural resources sectors. This will be launched in collaboration with key stakeholders during the first half of this year,” he said.
The planned board is expected to complement the operations of the VFEX, which was established in 2020 as a subsidiary of the ZSE operating within the Victoria Falls Special Economic Zone.
A junior mining company is typically defined as a firm whose principal activity is mining but does not yet qualify for listing on the main board, although it meets the requirements for listing on a junior platform.
Market analysts say the creation of the Venture Board could provide a structured platform for early-stage mining companies, particularly those involved in exploration, to access funding that is often difficult to secure through traditional financing channels.
Mr Bgoni said the initiative forms part of a broader strategy by ZSE Holdings to enhance investor participation and diversify its product offering.
“Our strategies as ZSE Holdings to increase investor interest include providing value to our shareholders now that we are a listed entity, through pursuing new opportunities,” he said.
“We are also working on diversifying our products and services so that our listings come from different security types and not just equities.”
He added that the exchange is also seeking to increase retail participation through improvements to its mobile trading platforms, including ZSE Direct and VFEX Direct.
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According to Mr Bgoni, the Venture Board will work alongside other strategic initiatives planned for the year.
“One of the strategic initiatives for this year includes the establishment of the Zimbabwe Entrepreneurship Exchange (ZEEX), which will boost liquidity, market activity and listings on our exchanges,” he said.Zimbabwean cultural products
Mr Bgoni also noted that VFEX’s participation in the Victoria Falls International Financial Centre (VFIFC) has strengthened its alignment with international standards, enhancing its position as a regional investment hub.
“The VFEX, being a participant in the Victoria Falls International Financial Centre, is part of a strategic initiative that has strengthened its alignment with international standards and enhanced its profile as a regional hub.
“This has significantly assisted in attracting both regional and international investors. These key projects will tap into new segments and enhance activity on the market,” he said.
Recent capital-raising activities in the mining sector have demonstrated the growing role of Zimbabwe’s capital markets in financing resource projects.Zimbabwean cultural products
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London and VFEX-listed mining firm Kavango Resources recently raised about US$8,4 million from investors in Zimbabwe and the United Kingdom to accelerate the expansion of its gold projects in the country.
The funds are expected to support the development of the Hillside Gold Project in Matabeleland South while also financing further exploration and potential acquisitions.
The company raised the capital through parallel subscriptions in the UK and on the VFEX, highlighting the growing appetite among both domestic and international investors for Zimbabwean mining assets.
Zimbabwe’s mining sector remains a key pillar of the economy, accounting for about 12 percent of gross domestic product and contributing the bulk of the country’s export earnings.
The VFEX has been positioning itself as a competitive platform for mining companies by offering incentives such as the ability to raise capital in hard currency.
Funds raised on the exchange are considered free funds and can be retained in foreign currency accounts, while offshore settlement is also permitted for trades conducted on the bourse.
Previous listings have demonstrated the exchange’s funding potential. In 2021, Caledonia Mining Corporation raised about US$7,8 million through depository receipts on the VFEX after the offer was oversubscribed by more than 50 percent by Zimbabwean investors.Zimbabwean cultural products
Part of the capital raised was used to fund a 12-megawatt solar photovoltaic plant, which became operational in November 2022 to help reduce mining costs.
Similarly, South African firm Tharisa Capital successfully listed three-year bonds worth over US$30 million on the VFEX in December 2022, with the funds earmarked to support the development of the US$391 million Karo Platinum project in Zimbabwe.-herald
