The Sunday News
Vusumuzi Dube, Online News Editor
PRESIDENT Mnangagwa today (Thursday) launched the Victoria Falls Stock Exchange (VFEX), the first stock exchange in the country that will be trading in the United States Dollar.
As a core activity, VFEX, will provide a gateway for companies in Zimbabwe, Sadc, and the rest of Sub-Saharan Africa to raise capital in foreign currency. It will also provide investors to trade in the secondary market in hard currency. This means all global companies invested in Zimbabwe can now seek a listing on VFEX.
The launch of VFEX is one of the strategic initiatives being implemented by Government to stabilise the economy and attract foreign direct investment as building blocks towards a middle-income economy by 2030.
The launch also saw the listing of Caledonia Mining Corporation.
Speaking at the launch, President Mnangagwa said his government has put in place a package of incentives to stimulate more listings on the VFEX and these have begun to bear fruit.
He noted that the listing of Caledonia Mining Corporation is the third within a year, which was a sign of confidence that investors are responding to the reforms being championed by the Second Republic.
“The concept of offshore financial services center exists in other jurisdictions and in Africa it’s Mauritius, and Zimbabwe is following suit. The name Victoria Falls attracts many across the globe and VFEX enhances not only tourism but the city’s status as a financial hub.
“Financial markets are key to growing the economy, expect VFEX to provide best window for investment not for Zimbabwe but rest of Africa. This offers window for pension funds to invest in forex denominated platforms,” said President Mnangagwa.
The President said the recent Memorandum of Understanding with Dubai Commodities exchange and VFEX is commendable and will enhance transparency in mining commodity pricing and enhance value for our small scale miners. This will also assist development of US$12bn mining economy
“My administration believes modenising the economy is not duty of government alone but all of us, with Government facilitating through creating an enabling environment for businesses to prosper.
“As a nation we pride ourselves in benefits accrued to our citizens hence public listing by Caledonia creates a window to empower local citizens,” he said
The President was accompanied to the launch by Finance and Economic Development Minister, Professor Mthuli Ncube, State Security Minister, Cde Owen Ncube among other senior Government officials.