Online Reporter
Nelson Gahadza
Senior Business Reporter
THE listing of the First Mutual Wealth (FMW) Gold Exchange Traded Fund (ETF) on the Victoria Falls Stock Exchange (VFEX) is a strategic milestone for capital markets, given the crucial role of innovative investment products in deepening financial inclusion, attracting capital and advancing the objectives of the National Development Strategy 2 (NDS 2), a senior Treasury official has said.
In a speech he delivered at the ETF’s listing ceremony on Friday, Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa said the development sends a strategic signal to both local and international investors that Zimbabwe’s financial markets are evolving and becoming increasingly sophisticated.
“The listing strengthens the Victoria Falls International Financial Centre initiative, which leverages hard currency trading and unrestricted capital repatriation to attract regional investment.
“By connecting local savings to highly liquid JSE assets, the fund provides a safety valve for liquidity,” he said.
The First Mutual Wealth (FMW) Gold ETF began trading on the VFEX on Monday and delivered an impressive debut performance, with the counter surging nearly 40 percent during its first trading session.
The ETF opened at an issue price of 10 US cents before closing the day at 13,94 US cents, reflecting strong investor appetite for the gold-linked investment vehicle.
Market statistics released after the session showed that 357,257 units exchanged hands on the opening day, underlining heightened interest in alternative investment products as the VFEX seeks to broaden its offerings beyond traditional equities and real estate investment trusts.
During the subscription phase, retail investors contributed more than 60 percent of total subscriptions, significantly exceeding the VFEX’s initial public spread target of 30 percent.
VFEX chairperson Florence Jambwa said the successful retail uptake marked a defining moment for Zimbabwe’s financial markets and demonstrated the increasing accessibility of investment products through digital platforms.
“The growth of retail participation remains one of our strategic priorities as a market,” she said.
The VFEX Direct digital platform, she said, played a critical role in enabling wider participation by ordinary investors and would continue to provide accessibility as trading in the ETF progresses.
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