VFEX growth spills over to tourism industry
THE rapid growth of the Victoria Falls Stock Exchange (VFEX) has had a positive impact on the development of the tourism city of Victoria Falls as the foreign currency-denominated bourse continues to put the destination on the global business map.
VFEX, which was launched in October 2020, is a subsidiary of the ZSE and it was established to kick-start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.
It is part of efforts to attract global capital, and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.
Located in Matabeleland North, it is the only United States dollar-denominated bourse in the country and the region, placing the province at a vantage point to lead in financial technologies investment.
The fast-growing USD-denominated stock exchange has been offering various incentives that include Government’s increase in the retention ratio for exporters listed on the VFEX to 100 percent, which has been an attractive factor for companies.
The platform enables companies in Zimbabwe, the Sadc region and the rest of Africa to raise capital in foreign currency.
All international companies invested in Zimbabwe can seek listing on VFEX. The Government has committed that the VFEX will remain a foreign exchange market in line with Vision 2030, which requires a lot of foreign investment as the country needs a vehicle that will make it attractive to foreign investors hence the VFEX, which has tax benefits.
With only 17 months since its launch in October 2020, VFEX has listings comprising African Sun Limited, Axia Corporation Limited, Bindura Nickel Corporation Limited, Caledonia Mining Corporation, First Capital Bank, Innscor Africa, KARO Mining Holdings, National Foods Limited, Nedbank Group Limited, Padenga Holdings, Seedco International, and Simbisa Brands Limited.
Edgars Stores Limited will be listing on April 5, to become the first clothing business to list.
Government designated Victoria Falls as an international financial services centre in the last leg of reforms to make the Special Economic Zone attractive to investors.
An international financial services centre caters for customers outside the jurisdiction of the domestic economy, dealing with flows of finance, financial products and services across borders.
Victoria Falls Town Clerk Mr Ronnie Dube said the VFEX attracts business to the city.
“People have shown so much confidence in VFEX because it is a foreign currency-denominated bourse. That, on its own, is a pull factor to the stock exchange and the city in general. It augers well with the expansion mantra of our city as it is helping expand the city business outside tourism,” he said.
Tourism is Victoria Falls’ major economic activity.
Mr Dube said benefits brought by the VFEX include job creation for local graduates, attracting businesspersons to the city as tourists or for business.
“This has added the impetus for tourism and with green bonds to be listed, that’s an opportunity for smart growth of our city,” he said.
Edgars Stores Limited, set to be the newest listing, will be the first retail clothing entity to list on the fast-expanding VFEX after shareholders overwhelmingly approved the delisting from the ZSE.
The approval was granted at an Extraordinary General Meeting of shareholders held last Friday.
In a statement, ZSE chief executive Mr Justin Bgoni said the ZSE will institute a trading halt on Edgars Stores Limited shares effective Thursday, March 28, 2024 to allow for the settlement of shares.
“The Zimbabwe Stock Exchange hereby notifies the investing public that the last day of trading in Edgars Stores Limited shares on the ZSE is Wednesday 27 March 2024. Pursuant to the company’s extraordinary general meeting held on Friday 25 March, the ZSE has requested authorisation from the Securities and Exchange Commission of Zimbabwe to delist Edgars Stores Limited from the ZSE and subsequently list on the VFEX.
“During the halt period, investors will not be able to buy or sell Edgars shares. Trading of the shares is expected to commence on VFEX on Monday 8 April 2024 subject to SECZ approval,” he said.
The VFEX market data yesterday was 99,30 percent with a turnover of US$790 720,77 from 66 trades.
-chronicle.c.zw
