The Zimbabwe Stock Exchange says the proposed Victoria Victoria Falls Exchange (VFEX)’s main objective is to assist export oriented companies to raise capital for growth.
While Finance and Economic Development Minister Mthuli Ncube has been at the forefront spearheading the establishment of the new bourse, the VFEX is part of the ZSE’s 5-year strategy to 2024.
According to chief executive officer Justin Bgoni, in his statement accompanying the ZSE’s annual report, the VFEX will target main sectors in the economy such as, mining, tourism, horticulture, tobacco, and Finance.
“It is estimated that the sectors require more than US$20 billion to resuscitate the industries,” he said
Bgoni said the Harare based stock exchange formulated a concept to establish the VFEX whose main objectives are
“Assist Government in achieving Vision 2030 goals; assist companies to raise capital for growth; and attract foreign investment.”
VFEX shall be operated from the central Business District of Victoria Falls and will trade and in USD.
According to Bgoni, the settlement and clearing of transactions consummated on the VFEX should be settled according to international best practice including offshore.
“VFEX will be looking for a strategic partner to operate and develop this initiative. Preferred partners include international Investment banks or other Exchanges around the globe,” he said.
The new bourse has received significant backing from Government and the Ministry of Finance in particular which has included notes on the VFEX in both the 2020 National Budget Statement and the 2020 Mid-Term Budget Review.
Minister Ncube said foreign investment is required to close funding gaps required to
resuscitate the economy in targeted sectors of mining, tourism, agriculture (tobacco), and horticulture.
“In order to create confidence in the operation of the Offshore Financing Centre, and attract capital across the globe, Government is establishing a number of incentives to the Exchange,” reads part of the 2020 Mid-Term Budget Review.