VFEX to compete at a global level
GOVERNMENT is positioning the Victoria Falls Stock Exchange (VFEX) to compete on a global scale by attracting quality listings, Finance and Economic Development Minister, Professor Mthuli Ncube, has said.
VFEX is a US dollar-denominated market established as part of an offshore financial services centre in the resort City of Victoria Falls.
As a licensed securities exchange, VFEX was established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.
Bindura Nickel Corporation Mine (Trojan Nickel Mine) in Bindura
Prof Ncube said the offshore financial services centre is expected to boost foreign direct investment inflows into Zimbabwe and also strengthen the country’s financial services sector.
In investment terms, an offshore financial services centre is a jurisdiction that makes available financial services to non-residents with the purpose of circumventing aspects of the non-resident’s home country or jurisdiction.
Speaking in Bulawayo last week, where he delivered a public lecture at the National University of Science and Technology (Nust), Prof Ncube said VFEX has vast potential to compete with regional counterparts and attract quality listings.
“This Friday, we are doing the listing of Innscor, it has gone offshore too. VFEX is our offshore market targeting companies that want to raise hard currency capital for their businesses. We want to promote quality companies through the VFEX and a few days ago, I appointed members of the board of the offshore financial sector and that will be the centre to drive foreign investments in the region in terms of capital markets developments,” he said.
Hybrid seed producer and distributor, SeedCo International Limited was the first to list on the VFEX when the bourse opened its doors in 2020 and has been joined by New York and London-listed gold miner, Caledonia, crocodile skins and meat processor, Padenga, Bindura Nickel Corporation, Nedbank Zimbabwe, pan-African fast-food group, Simbisa Brands Limited, Johannesburg-traded metals producer Tharisa, Karo Holdings Limited and recently food giant, National Foods Limited.
The listed firms with regional or global exposure, need the flexibility that comes with trading in forex. Axia Corporation Limited will soon list on the VFEX after its shareholders passed three critical resolutions that further pave the way for the new listing.
Minister Ncube said the offshore centre ought to compete with other offshore financial centres such as one in Mauritius, Rwanda and UAE, adding “we can be that top platform through VFEX.”
When Government launched the VFEX in 2020, Prof Ncube said there was a need for the creation of globally-recognised stock exchanges in Africa, those that arise from environments that are devoid of any negative impact of exchange rate fluctuations.
VFEX allows listed companies to raise and trade their stock in any convertible hard currency thereby limiting the exchange risk.
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.
Nedbank Zimbabwe
To that end, the Government has since appointed a seasoned banker, Mr Marc Holtzman as the board chairperson of the Victoria Falls International (Offshore) Financial Services Centre.
Mr Holtzman holds a BA in Economics from Lehigh University and brings a wealth of relevant offshore banking experience to the Victoria Falls International (Offshore) Financial Services Centre.
He is the former chairman of Meridian Capital HK, vice-chairman of Barclays and ABN Amro Bank as well as co-founder and president of MeesPierson EurAmerica.-chronicle.c.zw
