Zimbabwe’s capital markets regulator – the Securities and Exchange Commission (SEZ) has licensed the Victoria Falls Stock Exchange (VFEX).
VFEX is a United States dollar-denominated stock exchange that will operate in the resort town of Victoria Falls. It is part of broader efforts by the Government to lure foreign investors to a country grappling with severe foreign exchange shortages.
In July, Government promulgated regulations that provide the legal basis for establishment and operation of the Victoria Falls Stock Exchange VFEX), as the country doubles down to attract global capital.
Finance Minister and Economic Development Minister Mthuli Ncube recently said the global securities exchange will seek partnerships with other global exchanges and partners around the world to become a truly global platform.
Statutory Instrument (SI) 196 of 2020, Exchange Control (Special Provisions for Securities Listed on Victoria Falls Stock Exchange) Regulations, 2020, provides for the establishment of VFEX.
Securities listed on the VFEX shall be tradable and settled solely in United States dollars or alternatively any other convertible currency.
A company resident in Zimbabwe or listed on the Zimbabwe Stock Exchange may list on VFEX not more than twenty percent 20 percent of its capital at any time on the Zimbabwe Stock Exchange.
Similarly, a company that is a Zimbabwean resident, but not listed on ZSE can list on VFEX if the capital raised by the company on the exchange is from an offshore source or from free funds.
Multiple-listed equities such as Old Mutual Zimbabwe, PPC Zimbabwe and Seed-Co International – which are currently suspended from trading on the Zimbabwe Stock Exchange (ZSE) – are expected to be among the first to list on the new bourse.