Government in talks with banks to support Victoria Falls Stock Exchange

ZIMBABWEAN authorities are in discussions with several international investment banks to support the new Victoria Falls Stock Exchange (VFEX) that will trade exclusively in foreign currency, Finance and Economic Development Minister, Professor Mthuli Ncube, said.

“The interest has been huge,” Ncube told a virtual analyst market briefing on Wednesday but declined to give further details. VFEX, a wholly-owned subsidiary of the Zimbabwe Stock Exchange (ZSE), was recently issued with a licence. It would be denominated in foreign currency and targets foreign investors as well as global capital markets especially the mining industry.

The global lenders would handle clearing and settlement of trades, thereby guaranteeing investors’ funds, Zimbabwe Stock Exchange Chief Executive Officer, Mr Justin Bgoni, said at the event. The companies involved in talks are based in Africa, Asia and Europe, he said.

The exchange, to be known as VFEX and based in the resort town of Victoria Falls, will open in “a couple of weeks,” said Bgoni, who will also head the bourse.

Yvonne Mhango, sub-Saharan Africa economist at Renaissance Capital, told the briefing that uppermost on foreign investors’ minds was the ability to repatriate their capital.

“What they want is a functioning stock exchange,” Mhango said.

-Bloomberg/Business Chronicle