Online Reporter
Nelson Gahadza
Senior Business Reporter
RESERVE Bank of Zimbabwe Governor Dr John Mushayavanhu has urged companies whose shares were suspended on the Zimbabwe Stock Exchange (ZSE) amid suspected illegal trading in their stocks to consider listing on the Victoria Falls Stock Exchange (VFEX).
The VFEX, a US dollar subsidiary of ZSE and aimed at facilitating foreign currency investments, started trading on October 26, 2020
It serves as an offshore financial services centre, offering US dollar-denominated trading and several tax incentives.
Three companies, namely Old Mutual Zimbabwe, PPC Zimbabwe and Seed Co International, had their shares suspended from trading on the ZSE in June 2020 amid concerns that the fungibility of their stocks was being used to create implied exchange rates used in foreign exchange trading on the parallel market.
Old Mutual, whose primary listing is the Johannesburg Stock Exchange, also maintains secondary listings in Malawi and Namibia.
PPC is also listed on the JSE, while Seed Co also trades on the Botswana Stock Exchange.
Fungibility means that shareholders in the three companies could buy shares from the ZSE and sell them on the offshore markets where the companies are dually listed.
As dual-listed, highly fungible counters, authorities suspected that their share prices—particularly the “Old Mutual Implied Rate” (OMIR)—were used to benchmark and speculate on the parallel market exchange rate, driving local currency instability.
Finance, Economic Development and Investment Promotion Minister Mtuli Ncube is on record saying the suspension was meant to allow investigations into suspected illicit transactions around the fungible stocks.
The central bank governor said the suspended counters could list on VFEX, stressing the conditions that led to their suspension had been addressed, following the launch of the Zimbabwe Gold in April 2024, which has remained largely stable.
“The suspended counters should consider listing on the Victoria Falls Stock Exchange because there is no longer that risk of currency volatility and the issues of implied rate, which resulted in the suspension,” Dr Mushayavanhu said.
His remarks come at a time when the monetary policy framework has
