VFEX eyes local mining sector

Business Reporter

The Victoria Falls Stock Exchange (VFEX) has set its eyes on the local mining sector as it intensifies its quest to lure more investors on its platform.

Speaking at a virtual VFEX Mining Masterclass, VFEX chief executive officer, Justin Bgoni said having the local mining sector listed on the stock exchange would boost the sector's chances of growth.

“The mining sector is a capital intensive industry which is reliant on the availability of foreign currency for its operations which is currently not readily available on the market, hence listing on the stock exchange would be beneficial to the sector since most miners are struggling to get adequate foreign currency to meet their needs,” he said.

“There are also capital challenges in the mining sector. The foreign exchange retention has reduced foreign currency availability for mining houses.”

The Chamber of Mines of Zimbabwe, chief executive, Isaac Kwesu said that, the introduction of the VFEX would assist members to access long term capital either as equity or in debt.

“There are a lot of projects that are on hold because of lack of capital for instance exploration financing which is very high risk, so it difficult to use regular income for that, it then requires capital from a stock exchange,” said Kwesu.

VFEX says that it has also put in place incentives to attract investors which include zero capital gains tax and relatively lower listing fees.

The stock exchange is on a drive to lure investors and is currently having talks with Government to go on a global tour to market the stock exchange internationally as it has been tipped to become a regional offshore financial services center.