Finance Minister to launch Contract for Differences (CFD) on Victoria Falls Stock Exchange (VFEX) for enhanced trading and financial inclusion

Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube is expected to launch the Contract for Differences (CFD) on the Victoria Falls Stock Exchange (VFEX) this morning

The introduction of CFDs on the VFEX aims to simplify its service offering, allowing investors to trade CFDs on a regulated platform and enhance retail participation, promoting financial inclusion.

A CFD is a financial contract that pays the differences in the settlement price between the open and closing trades and is a derivative that allows investors to trade the direction of securities over the very short-term.

CFDs can also be used to support low carbon electricity generation projects.

The CFD launch is a culmination of partnership between VFEX, a subsidiary of the Zimbabwe Stock Exchange (ZSE) and the Dubai Gold and Commodities Exchange (DGCX), the region’s leading derivatives exchange.

The two signed a Memorandum of Understanding to strengthen bilateral co-operation, as well as exchange knowledge around commodities trading.

**Finance Minister Professor Mthuli Ncube has arrived in Victoria Falls to launch the first Contract for Differences (CFDs) on the Victoria Falls Stock Exchange.**

As part of the agreement, the DGCX was expected to extend technical support, knowledge and skills to VFEX to establish an international commodities exchange in Zimbabwe.

This comes as foreign companies have expressed interest in listing on the fast-growing VFEX and the CFDs will enhance protection of investors’ money given the background of loss of savings in the past.

This would be buttressed by the launch of the Minerals and Commodities Exchange and welcoming of more listings, with regional and international counters set to join the VFEX ship soon.

VFEX was launched in October 2020 to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls as the Government designated the city as an international financial services centre in the last leg of reforms to make the Special Economic Zone attractive to investors.

It is part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.

Located in Matabeleland North, VFEX is the only USD-denominated bourse in the region, placing the province at a vantage point to lead in financial technologies investment.

VFEX has 14 counters spanning various sectors of the economy.