Zimbabwe has launched its new United States dollar-denominated bourse – the Victoria Falls Stock Exchange (VFEX) – this afternoon.
Finance and Economic Development Minister Mthuli Ncube said the bourse will help attract new foreign capital into the country.
“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 and also provide investors to trade in the secondary market in hard currency.
“As a result, all global companies invested in Zimbabwe can now seek a listing on VFEX,” said the Treasury boss.
“Investors and issuers on the VFEX platform will benefit from several fiscal and non-fiscal incentives that have been approved by my Ministry, such as lower taxes (5% dividend withholding tax (foreign investors only) and exemption from capital gains withholding) and reduced exchange control restrictions.
“The tax incentives will significantly create confidence in the operation of the offshore financing center and attract capital from across the globe.”
Securities and Exchange Commission of Zimbabwe (SECZ) chief executive Tafadzwa Chinamo concurred.
“VFEX has been set up to facilitate capital raising in hard currency, which is what some of our productive sectors are in need of at the moment,” he said.
“VFEX will also reduce investment risks, especially for foreign investors who face exchange rate and exchange control risks.
“By trading in hard currency, VFEX will also facilitate valuation of assets in hard currency.”
The VFEX is part of broader initiatives by authorities to establish an Offshore Financial Services Centre in the resort town.
VFEX chief executive Justin Bgoni highlighted the journey to the setting up of the new stock market.
“The plan to launch VFEX was moteed last year in November when the ZSE Board and senior management sat to strategize for the next 5 years.
“A concept was then developed and submitted through, the then Special Economic Zones Authority.
“The concept went all the way to Cabinet and was approved at that level.”
Seed-Co International has already become the first company to list on the new bourse.