Grand moment as African Sun lists on VFEX

Leonard Ncube

Victoria Falls Reporter

One of Zimbabwe’s leading hospitality groups, African Sun Limited (ASL), has listed on the Victoria Falls Stock Exchange (VFEX) to become the first tourism player on the United States dollar denominated bourse.

With business interests organised into five divisions; City and Country Hotels, Resort Hotels, The Victoria Falls Hotel Partnership, Sun Leisure and Real Estate, ASL becomes the 11th listing since establishment of the VFEX in 2020.

The hotel group, with presence across Southern Africa, and history dating back to 1971, boasts of 10 properties namely The Victoria Falls Hotel (operated in partnership with Meikles Hospitality (Private) Limited), Elephant Hills Resort and Conference Centre, Caribbea Bay Resort (Kaiba), Great Zimbabwe Hotel, Hwange Safari Lodge, Holiday Inn Harare, Holiday Inn Bulawayo, Holiday Inn Mutare, Troutbeck Resort and Monomotapa Hotel, to become one of Southern Africa’s largest hotel chains.

The momentous listing is a milestone achievement for the tourism industry, and the VFEX, which is domiciled in the country’s tourism destination.

For the first time since the maiden listing on the VFEX, the listing ceremony took place at Elephant Hills Resort.

Environment, Climate, Tourism and Hospitality Industry Minister, Nqobizitha Mangaliso Ndlovu, was the guest of honour.

He said ASL’s listing was not just a big day for ASL alone, but the entire tourism fraternity, and encouraged other operators to follow suit.

“I’m greatly honoured to join you at this very important occasion where we are gathered to celebrate the listing of African Sun Limited as the first hospitality entity on the Victoria Falls Stock Exchange (VFEX),” said Minister Ndlovu.

“Looking at the amount of activity that is being generated on the VFEX – only established in 2020 as a pioneering Offshore Financial Services Centre in Zimbabwe; the vision to create an exchange that can drive the development of the financial systems to address the modern-day challenges of the Zimbabwean people is fast becoming a reality.”

Tourism and hospitality is a low-hanging fruit and the Government has identified the sector under the five-year economic blueprint, National Development Strategy 1, as one of the economic pillars alongside agriculture, mining and manufacturing.

The listing of tourism sector players, together with firms from other sectors, will amplify national economic development and create exciting downstream opportunities for the prosperity of people.

Minister Ndlovu added: “We are excited to see the listing of the first hospitality entity on the VFEX. According to the NDS 1, one of the key strategies is to achieve tourism growth. This will be achieved through, product development and diversification, markets development and diversification, destination accessibility and tourism investments promotion.

“This particular listing not only takes cognisance of the vision for the VFEX, but echoes the primary function of our capital markets, which should be to mobilise significant investment capital and channel that capital into our productive sectors.”

With the listing, ASL will see the group readily access equity and debt capital to finance its continuous upgrade and expansion projects.

The Government believes this is an opportune moment for financial intermediaries and investors, both local and foreign, to closely examine the vast opportunities available and being unlocked in Zimbabwe.

ASL chair Dr Emmanuel Fundira said the listing marks a significant milestone for the group and is testament to the growing confidence that investors continue to have in Zimbabwe’s capital markets.

He said ASL was listed on the Zimbabwe Stock Exchange in 1988 and made the decision to migrate to the VFEX to raise foreign capital for its expansion projects.

“Our decision to list on the VFEX was influenced by the desire to ensure that the company and ultimately its shareholders, take full advantage of the generous benefits which have been availed to companies that list on this steadily growing exchange.

“Tourism is a critical pillar of Zimbabwe’s economy and African Sun is proud to play a key role in achieving the sector’s target of US$5 billion tourism earnings by 2025 under NDS1.

“Our vision is to be the leading provider in hospitality and leisure operations in Africa by providing outstanding hospitality experiences,” said Dr Fundira.

The VFEX was launched in October 2020, and is a subsidiary of the ZSE.

The US dollar-denominated stock exchange has been offering various incentives that include a high retention ratio for exporters listed on the VFEX of 100 percent, which has been an attractive factor for companies.

Listing on the VFEX also facilitates raising of US dollar capital, which enhances the potential for organic and inorganic growth.

ZSE chair Mrs Caroline Sandura said ASL’s listing was monumental as the group celebrates 55 years of existence.

“We are excited to have you on board as our first tourism company, which also happens to be a top performing company in Zimbabwe.

“This big and strategic listing is truly going to increase African Sun’s global footprint,” she said.

Delegates to the just-ended stock exchanges conference held in Victoria Falls, attended the listing ceremony.