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Zimbabwe: Vic Falls Stock Exchange Launches With Only One Trading Partner

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Victoria Falls — Finance Minister Mthuli Ncube has launched the Victoria Falls Stock Exchange (VFEX) here which will kick start the operationalisation of the Victoria Falls Special Economic Zone (SEZ).

However, only one company, SeedCo International, a seed processing company, was the only company that listed with trading expected to begin Monday.

Ncube who was the guest speaker said VFEX will be a platform for companies in Zimbabwe, the SADC sub-Saharan Africa to raise capital in foreign currency and help investors to trade in the secondary market in hard currency.

The government designated the resort town of Victoria Falls a hub for tourism and financial services under the SEZ initiative to attract tourists and investment through tourism.

The VFEX is a wholly-owned subsidiary of the Zimbabwe Stock Exchange (ZSE) and will trade solely in foreign currency targeting mining companies in Zimbabwe and the Africa continent, before expanding across the globe.

Trading only in foreign currency is expected to help reduce settlement risks in troubled Zimbabwe.

“The establishment of this exchange today marks the beginning in earnest of our journey towards the establishment of an offshore financial services centre in Victoria Falls,” Ncube said.

“The move will go down as the laying of the foundation stone of the offshore financial service centre and is a key pillar supporting efforts to grow Victoria Falls’ status as not just a special economic zone but an offshore financial hub. The launch of VFEX will therefore kick start the Victoria Falls Special Economic Zone, ” said Ncube.