VFEX registers 18-fold jump in trade volumes
THE Victoria Falls Stock Exchange (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.
The bourse experienced rapid growth in the last quarter of 2022 injecting much-needed confidence and cementing the country as a safe investment destination.
The Zimbabwe Stock Exchange chief executive officer, Mr Justin Bgoni said the United State dollar denominated bourse achieved the milestone in spite of the harsh environment in 2022 in terms of legislation and other fiscal measures
Victoria Falls Stock Exchange
“The value of trades on the Victoria Falls Stock Exchange (VFEX) increased to US$12 million in 2022 compared to US$619 000 in 2021, which was an 18-fold jump,” said Mr Bgoni on his official twitter handle.
“The number of trades were nine times jump. We remain bullish on the prospects of VFEX as a viable Exchange.”
Mr Bgoni also said the value of trades in 2022 were $132 billion compared to $65 billion in 2021, which was a 102 percent increase.
“The number of trades were fairly static with 113 000 trades in both years. This was in spite of the harsh environment in 2022 in terms of legislation and other fiscal measures,” he said.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), launched in 2020 as 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.
The establishment of the VFEX is one of the many initiatives implemented by the Second Republic to stabilise the economy and attract foreign direct investment.
The VFEX is fast attracting listings as it offers a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.
Investors who participate in the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, tax incentives that include a five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks
At its inception, sceptics were quick to claim the bourse would suffer a stillbirth citing a lack of perceived investor confidence by-in.
It started operating with a single counter- Seed Co International in October 2019.
By December 2022, seven firms were trading while several more were joining the queue after issuing notices to shareholders.
For instance, National Foods Holdings Limited and Axia Corporation Limited boards have approved the migration path.
Financial services group GetBucks has also indicated plans to migrate to the VFEX from the ZSE.
The bourse now boasts of hosting Padenga Holdings Limited, mining giant Caledonia Mining, Bindura Nickel Corporation, Simbisa Brands and Nedbank Zimbabwe, which became the first financial institution to trade.
Platinum miner Karo Mining Holdings, listed in December 2022, becoming the seventh counter.
The mining group garnered an oversubscribed bond issue of US$31,8 million worth of interest generated, exceeding the minimum requirement of US$25 million.chronicle.cl.zw
