Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
There is a growing appetite from mining firms to list on the Victoria Falls Stock Exchange (VFEX), with the bourse positioning itself to become one of the largest on the continent, an official has said.
Already, Caledonia, platinum miner Karo Mining Holdings and Invictus Energy are on the platform, alongside the suspended Bindura Nickel Mine.
The VFEX — a US dollar-denominated platform — continues to attract interest through new listings and product innovations, cementing its role as a preferred capital-raising avenue for both local and international investors.
Established in October 2020, the VFEX is the only exchange in Africa trading exclusively in US dollar terms. It was launched by the Government as part of a pioneer offshore financial services centre to lure global capital. Since then, it has recorded listings across diverse sectors including mining, financial services, tourism, hospitality and clothing.
Addressing delegates at the Chartered Governance and Accountability Institute of Zimbabwe (CGI Zimbabwe) Summer School in Bulawayo, VFEX head of Markets, Mr Robert Mubaiwa, said the exchange was generating strong interest from mining houses in need of fresh capital.
“If you see the information that we are sharing with the market, there is more appetite for new funds as mining houses are showing keen interest coming to the market or to list with us.
“We have seen companies raising significant amounts of money and I have deliberately omitted the amounts to generate a better conversation between us and the institute,” said Mr Mubaiwa.
He said the VFEX had demonstrated resilience and efficiency, supported by robust settlement systems.
“Since 2020, every trade that has gone through the stock exchange has been settled on time without delay. That is a confidence booster,” he said.
Mr Mubaiwa revealed that counters on the VFEX appreciated by 15 percent last year, a significant gain given its US dollar base.
“This is a huge number when you talk about the number in US dollar terms. We are positive on the returns that we have seen. We are witnessing an increase in the number of trades per month. Everything is pointing to a positive trajectory,” he said.
He further highlighted that several firms had successfully raised capital through the bourse.
“For instance, Caledonia raised local funds to the tune of $12 million, Karo raised $36 million and $25 million came from local funds. Eagle Reit raised about $19,5 million and Invictus raised $12 million.
“What we have seen on projects is that the projects have to have a clear rationale for investors to invest. People have to understand protection mechanisms in the project and the transparency of the project,” he said.
The oversubscribed Summer School, running under the theme “Upscaling Governance and Accountancy Professionals for Enhanced Organisational Resilience”, is tackling topical issues ranging from the future of capital markets, artificial intelligence and the evolving role of public financial management and auditing in building economic stability.
Founded in England in 1891, the global Chartered Governance Institute (CGI) — formerly the Institute of Chartered Secretaries and Administrators — was granted its Royal Charter in 1902. CGI Zimbabwe serves as the professional home for governance and accountancy experts, with competencies spanning corporate governance, accounting, taxation, business administration, company secretaryship and general management.
Bongani Ndlovu