Zimbabwean president launches forex-denominated bourse as country seeks to attract more
Zimbabwean President Emmerson Mnangagwa on Thursday launched the Victoria Falls Stock Exchange (VFEX), the country’s second stock exchange that exclusively trades in U.S. dollars.
Located in the resort city of Victoria Falls, the VFEX was established in October 2020 as a subsidiary of the Harare-based Zimbabwe Stock Exchange (ZSE).
The launch coincided with the listing of mining firm, Caledonia Mining Corporation, which became the third company to list on the bourse after leading maize seed producer SeedCo International Limited and Padenga Holdings, a crocodile skins and meat producer with interests in gold mining.
The VFEX is aimed at providing a global platform for the trading of stocks in foreign currency in a way that promotes foreign investment into the country and the southern African region.
The exchange is also one of the many initiatives being implemented by the Zimbabwean government to stabilize the economy and attract foreign direct investment.
At the launch, Mnangagwa said the Zimbabwean government will continue to improve the ease of doing business to lure more FDI and listings on the VFEX, as well as to put in place necessary frameworks and mechanisms to further consolidate investor confidence and deepen the country’s financial markets.
The VFEX was expected to drive domestic and international investment, key enablers to the attainment of an upper-middle-income economy by 2030, Mnangagwa said.
“As we pursue the attainment of Vision 2030, my administration will continue to play its role of creating an enabling environment so that capital feels safe in Zimbabwe,” he added.
The VFEX, he said, also provided an opportunity for locals to participate in the economy.
He said pension funds should invest in foreign currency denominated securities to enhance their ability to diversify currency risk and continue to grow sustainable value for pensioners.
Mnangagwa welcomed the listing of Caledonia Mining Corporation on the VFEX, saying the listing is a sign of confidence that investors have in the policies of the Zimbabwean government.
This is especially so considering that Caledonia is already listed on exchanges in bigger economies such as the United States, he said.