Matabeleland North Correspondent
Finance and Economic Development Minister, Professor Mthuli Ncube says regional companies were eligible to list on the Victoria Falls Stock Exchange (VFEX) to raise capital.
Prof Ncube, who was speaking in Victoria Falls on Friday at the launch of the VFEX, noted that the primary objective of the new stock exchange was to raise capital for various companies in the country and the region.
“It is a platform for raising foreign direct investment into the country. It is also a platform that will provide investors and savers including the retail investment to make money. It is a platform for savers.
“Our region is endowed with minerals; Zimbabwe, Malawi, Botswana, South Africa and Zambia. The companies operating in those countries are also free to approach VFEX to list on this stock exchange and use it as conduit for raising capital in the whole region. The fact that those companies are listed here, even if they are not leaving the capital here, Zimbabwe benefits in fees and whatever else they leave behind and we also become a reference and that’s what is most critical,” Minister Ncube said.
He added that government will also list some of its bonds on the VFEX in hard currency.
“We are even thinking of listing some of the bonds required to fund the Global Compensation Agreement, to compensate the former white farmers. We are thinking of raising some of the resources here through the listing of bonds in US dollars,” he said.
Speaking at the same occasion, VFEX Chairperson, Caroline Sandura said the stock exchange was meant to kick start the establishment of the Offshore Financial Services Centre in the country.
The Offshore Financial Services Centre is meant to set Zimbabwe on the same competitive platform with the likes of the Dubai International Financial Centre and other international financial hubs. This is no mean feat and we are aware of the effort required to get to that level,” she said.
The VFEX that will trade in US dollars was granted approval to launch and commence trading of securities on Monday 26 October 2020 by the Securities and Exchange Commission of Zimbabwe.
VFEX will operate as a wholly-owned subsidiary of the Zimbabwe Stock Exchange.