THE Victoria Falls Stock Exchange (VFex) continues to attract investors, as reflected by rising trading activity, capital-raising transactions and a growing pipeline of potential new listings.Business news analysis
The United States dollar-denominated exchange was established to provide issuers with access to stable capital, while offering investors diversified opportunities in a secure trading environment.
The VFex provides a range of incentives that have attracted several companies that migrated from the Zimbabwe Stock Exchange (ZSE), which trades in the local currency — Zimbabwe Gold (ZimGold).
The incentives include lower trading fees, absence of capital gains withholding tax and a reduced dividend withholding tax of only five percent for foreign investors.
Since its establishment in 2020, several companies have successfully raised capital on the bourse through various capital-raising initiatives.Investment in Zimbabwe
According to Zimbabwe Stock Exchange Holdings Group chairperson Mrs Caroline Sandura, the VFex has facilitated capital raises exceeding US$100 million across multiple sectors over the past five years.
These funds have supported expansion projects, strengthened corporate balance sheets and enabled long-term asset development.
Mrs Sandura made these remarks during the listing ceremony of the Pfuma Real Estate Investment Trust (Reit) on the VFex on February 6 this year.
The REIT became the 18th counter on the bourse. It also became the second Reit on the exchange after the Eagle Reit, which listed in May 2025.
Pfuma successfully raised US$25 million during its subscription period from December 11, 2025 to January 23, 2026, achieving a 100 percent subscription level.
ZSE Holdings, the holding company for the two equities markets, expects market activity on both the ZSE and VFex to increase in 2026, driven by heightened participation from both local and foreign investors.
In an interview, chief executive Mr Justin Bgoni said the company adopted several strategies to increase investor interest, aimed at creating value for shareholders now that it is a listed entity pursuing new opportunities.
“We are working on diversifying our products and services so that our listings come from different security types and not just equities,” he said.
“We are also targeting to increase retail participation through enhancements of our mobile trading platforms, ZSE Direct and VFex Direct.”
Mr Bgoni said one of the strategic initiatives for this year includes the establishment of the Zimbabwe Entrepreneurship Exchange (ZEEX) and the Venture Board, which will boost liquidity, market activity and listings on the company’s exchanges.Investment in Zimbabwe
“The VFex, being a participant of the Victoria Falls International Financial Centre (VFIFC), is a strategic initiative that has strengthened its alignment with international standards, enhancing its profile as a regional hub,” he said.
“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.”
Mr Bgoni noted that the Venture Board 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.
Trigrams Investments analyst Mr Wafa Kuchera said investors and issuers on the VFex were quietly benefitting from strong returns, with the exchange’s market capitalisation having grown by nearly 30 percent in real terms year-to-date.
“Sometimes the silence is all the proof that is needed,” he said.
Mr Kuchera said several indicators suggested 2026 could be a turning point for the economy, supported by both the ZSE and VFex, which are well-positioned to capitalise on improving investor sentiment.
“I believe the ZSE is already well-positioned to take advantage of these opportunities alongside investors who are beginning to recognise that both exchanges will play a critical role in capital mobilisation going forward,” he said.
Meanwhile, Zimbabwe Stock Exchange has proposed listing Econet InfraCo on the VFex by way of introduction following its planned delisting from the ZSE.Investment in Zimbabwe
Econet InfraCo is a wholly owned subsidiary of Econet that owns real estate, passive telecommunications infrastructure and power assets.
According to Econet, the proposed listing is intended to provide shareholders with a listed investment alternative that more accurately reflects the distinct investment characteristics of real estate and passive telecommunications infrastructure assets.
“The VFex listing framework, with its US dollar-denominated trading environment and focus on asset-backed and infrastructure-orientated issuers, is considered more appropriate for Econet InfraCo’s business model,” the company said in its delisting circular.
Econet said the VFex provides a more suitable platform for the market to recognise and appropriately price the infrastructure-style valuation characteristics of the assets compared to the ZSE.
Companies that have successfully raised capital on the VFex include London- and Zimbabwe-listed mining firm Kavango Resources, which raised about US$8,4 million from investors in Zimbabwe and the United Kingdom to accelerate the expansion of its gold projects in Filabusi, Matabeleland South Province.
Karo Mining Holdings, which is developing a platinum mine in Zimbabwe, also issued a US$50 million three-year bond on the VFex in 2022 to fund its mining projects.
Caledonia Mining Corporation raised approximately US$7,8 million through its initial listing on the VFex in December 2021, surpassing its initial US$5 million target.
According to FBC Securities, the VFex International Financial Services Centre (IFSC) framework creates a differentiated regional value proposition that no other exchange in the region offers.
The firm said a pipeline of new listings, particularly in the resources sector and specialised investment vehicles, should support growth on the VFex going forward.
“However, global risks such as the Middle East conflict and elevated oil prices could dampen frontier market sentiment. Nevertheless, gold’s safe-haven status during geopolitical uncertainty benefits VFex mining counters,” the firm said in its February 2026 ZSE and VFex report.
FBC Securities said the VFex extended its upward trajectory in February, with the VFex All-Share Index advancing by 6,01 percent to close at 224,06 points, bringing year-to-date gains to 26,50 percent.
The stockbroking and equities research firm said February saw the listing of the Pfuma Reit, the exchange’s second property vehicle, broadening the product offering and demonstrating the platform’s capacity to accommodate diverse asset classes.
“Most significantly, Statutory Instruments 38, 39 and 43 of 2026 are notable milestones towards the operationalisation of the Victoria Falls International Financial Services Centre, providing the legal architecture for licensing, permissible activities and tax incentives for participating entities,” reads the report.
“This positions VFex not merely as a national stock exchange, but as a platform for regional and international capital raising, with the potential to attract listings and investment from beyond Zimbabwe’s borders.”Investment in Zimbabwe
Equity Axis analyst Mr Tinashe Duma said the medium-term outlook for both the ZSE and VFex hinges on the successful implementation of strategic developments, including the anticipated listings such as InfraCo on the VFex.
“This evolution suggests that the market’s structural shift towards a more US dollar-based economy will continue to reshape investor sentiment and liquidity dynamics,” he said.
“With the proposed listing of InfraCo on the VFex and the delisting of Econet and FMP from the ZSE, we expect VFex market capitalisation to climb to about US$3,6 billion, while the ZSE’s may decline to around US$3,4 billion.”
Mr Duma said the VFex stands to benefit from its growing attractiveness to both local and foreign investors, as its US dollar-denominated transactions provide stability and diversification opportunities.
He said the anticipated increase in market capitalisation, potentially surpassing that of the ZSE, could further position the VFex as the preferred market for many investors.-herald
