Chronicle Editor
Leonard Ncube and Caroline Mutsawu
REGISTERED commercial bank, First Capital Bank, last Friday listed on the Victoria Falls Stock Exchange (VFEX) to become the first local financial institution and 13th listing on the United States-denominated bourse.
First Capital Bank delisted from the Zimbabwe Stock Exchange and listed on the VFEX to raise capital in foreign currency.
Finance and Economic Development Minister Professor Mthuli Ncube who was guest of honour at the event said market players like First Capital Bank Limited were instrumental to the realisation of the country’s goals. He said the banking sector was a key pillar for trade and is a major anchor towards the attainment of annual Gross Domestic Product (GDP) goals.
“I commend First Capital Bank Limited for being the first financial institution on the VFEX. Your deliberate execution will also translate to value to our nation through economic growth and ultimately to your shareholders enabling your business to unlock more positive returns,” said Prof Ncube.
“As a ministry, we support and applaud critical growth moves such as this because they are directly linked to how we achieve our objectives under the National Development Strategy 1, built upon a philosophy that says ‘Zimbabwe is open for business’ and is structured to deliver an upper middle-income economy by the year 2030.”
Prof Ncube reaffirmed Government support towards the VFEX saying the bourse is the first step towards the establishment of an International Offshore Financial Services Centre. He said authorities remain committed to the incentives that were announced in respect to participation on the VFEX at its inception.
This is being done to drive private sector-led funding solutions which are a key enabler to the achievement of national development goals.
Prof Ncube said through provision of funding solutions, banks were a catalyst for output growth in the productive sectors of the economy, which include industry, agriculture, mining, infrastructure and telecoms among others.
“Today First Capital Bank becomes the 13th organisation to list on this bourse. Since its commencement we have observed a steady growth of companies joining the Victoria Falls Exchange,” he said.
“This is evidence of the investors’ confidence and trust in what the platform represents and the opportunities it will unlock for all stakeholders. We are encouraged by this and look forward to more organisations listing.
Prof Ncube said listing on VFEX will assist First Capital Bank to participate in big-ticket transactions that Zimbabwe desires as it rebuilds its economic base.
VFEX chairperson, Mrs Caroline Sandura, said getting 13 issuers on board within just three years of the exchange’s establishment is a remarkable achievement.
She said the bank will be able to raise capital in hard currency and through different securities, raise tax incentives, lower trading fees for investors as well as make valuation and reporting easier.
“I urge you to leverage on these benefits and push forward the projects you have in your pipeline and diversify your operations,” said Mrs Sandura.
“VFEX and First Capital are exploring ways to work together on various initiatives that are aimed at promoting the VFEX and the capital markets and this has resulted in the signing of a Memorandum of Understanding.”
The bank’s board chairman Mr Patrick Devenish said the migration from ZSE to VFEX is a significant milestone for the bank.
“We are particularly proud to be the first banking institution to list on VFEX. We are excited to be the prospects of raising the USD-denominated funding in the future in the form of fixed capital or debt instruments,” he said.
“We are confident that the VFEX is the right gateway for in-bound investment and are positioning ourselves to play a part in bringing in the much-needed dollar investment into the economy.
“We plan to increase our foreign earnings. To achieve this we have introduced several foreign currency-denominated products and partnerships through our commercial paper . . . in addition to being an efficiently priced platform, the VFEX will give additional value to our shareholders in the form of tax incentives, USD capital gains and dividends amongst other benefits.”
First Capital Bank managing director Mr Ciaran McSharry said listing on VFEX will help the bank achieve its strategic focus areas by deepening the market intensity, building a digital bank and building brand equity.
First Capital Bank is a leading player in Zimbabwe’s banking and financial services industry with a long-standing history in Zimbabwe and regional operations in Botswana, Malawi, Mozambique and Zambia.
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