Online Reporter
Rutendo Nyeve, [email protected]
THE Victoria Falls Stock Exchange (VFEX), a flagship creation of President Mnangagwa’s Second Republic, has continued to justify its establishment by facilitating capital raises exceeding US$100 million across multiple sectors in just five years.
The exchange — launched by the President to anchor Zimbabwe’s financial modernisation drive — has grown into a strategic platform for foreign currency investment, supporting expansion projects, strengthening corporate balance sheets and enabling long term asset development.
At the 2021 launch, President Mnangagwa described the VFEX as a key instrument for national transformation, saying: “The Victoria Falls Stock Exchange is expected to drive domestic and international investments, which are a key requirement for the attainment of our vision of a prosperous and empowered upper-middle-income economy by 2030.”
He added that his administration would ensure investor security, stating: “As we pursue the attainment of Vision 2030, my administration will continue to play its role of creating an enabling environment so that capital feels safe in Zimbabwe.”
This growing impact was highlighted by Zimbabwe Stock Exchange group chairman Mrs Caroline Sandura during the listing ceremony of the Pfuma Real Estate Investment Trust (REIT) on the VFEX on Friday in Victoria Falls.
Speaking at the ceremony, Mrs Sandura highlighted the exchange’s growth since inception.
“Over the past five years, the VFEX has facilitated substantial capital raises across multiple sectors, including mining and real estate of over US$100 million. These capital inflows have supported expansion projects, strengthened balance sheets and enabled long-term asset development. The cumulative capital mobilised during this period underscores the Exchange’s growing relevance as a funding avenue for corporates seeking stable foreign currency financing.”
The VFEX, a United States dollar-denominated exchange, was established to provide issuers with access to stable capital and investors with exposure to diversified opportunities in a secure trading environment.
With the listing of Pfuma REIT, the exchange now has 18 counters, including two REITs, reflecting progress since its launch five years ago.
Mrs Sandura noted that beyond capital mobilisation, the exchange has recorded improved liquidity metrics, broader investor participation and greater visibility of Zimbabwean assets in regional and international markets.
“When compared to other exchanges across the region, the VFEX stands out for its US dollar denomination, investor-friendly regulatory environment and targeted incentives designed to attract both issuers and investors,” she said.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube expressed satisfaction with the growing confidence in both the exchange and the wider economy.
“We have witnessed growing confidence first of all in our economy, in our investor market, but also growing confidence in the VFEX itself, and this confidence in the projects that the Pfuma Fund is investing in.
They are investing in projects in Harare, which is a big metropolis but also venturing to smaller centres in the Midlands and other areas, and again this is pleasing to see the spread of investments taking place through such instruments.”
Prof Ncube said REITs and Exchange Traded Funds (ETFs) were introduced to address liquidity challenges, particularly for pension funds.
“The idea here was to give liquidity to investors. It’s quite easy for a pension fund to invest money and then the money is stuck in some building with tenants, and the pension fund can’t get out, neither can it pay its beneficiaries.
So in order to really deal with this matter, we decided to introduce REITs, which will ensure that there is liquidity, there’s also transparency and governance, this is very important.”
He also revealed discussions with global capital markets, including the New York Stock Exchange, to support cross listings and deepen cooperation.
“The fact that we are now at number 18 in terms of listed instruments on VFEX is testimony to the interest that these foreign investors are showing, but also what domestic investors are showing.
We are very keen to promote collaboration between our international financial centre with other global capital markets, such as the New York Stock Exchange for example.
I was there on the 6th of January this year to speak to them, and they’re keen to collaborate to support cross-listings,” Prof Ncube said.
The Pfuma REIT private placement was oversubscribed, demonstrating strong investor appetite and confidence in the VFEX’s regulatory framework.
