Online Reporter
Tapiwanashe Mangwiro
Zimbabwe’s capital markets have received a major shot in the arm following the introduction of new, streamlined rules to cut the red tape for dual-listed companies to migrate from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange.
Analysts see this as a strategically key development, primed to supercharge the country’s US dollar market and lure hungry investors looking for hard-currency stability.
The new framework, outlined in a joint practice note issued by ZSE and VFEX removes several regulatory hurdles that previously made such migration lengthy and complex.
ZSE chief executive Mr Justin Bgoni, said the practice note provides a clear pathway for companies that already have dual listings to shift their secondary listing from ZSE to VFEX.
“The VFEX Listings Requirements permit the Listings Committee to exercise discretion in the application of the rules where certain circumstances exist,” Mr Bgoni said in the notice.
“In this respect, the VFEX Listings Committee in consultation with the ZSE Listings Committee considered and resolved to make it discretionary for dually listed companies with a secondary listing on the ZSE seeking to migrate such listing from the ZSE to the VFEX to publish full listing particulars.”
The VFEX, which is a subsidiary of the ZSE, was established in 2020 as an offshore-oriented exchange that allows trading and settlement in US dollars and other convertible foreign currencies.
Under normal listing procedures, companies shifting exchanges are required to publish detailed listing documents outlining their financial position, governance structure and operational outlook.
However, the new practice note allows the VFEX Listings Committee to waive this requirement for companies that already maintain listings on other exchanges.
Companies seeking such dispensation must formally apply for a waiver and comply with any conditions that the committee may impose.
The changes also remove another major regulatory step that previously complicated migration between the two exchanges.
Ordinarily, firms delisting from the ZSE are required to publish a delisting circular and obtain shareholder approval through an extraordinary general meeting.
The new guidelines, however, stipulate that this requirement will not apply to dually listed companies that wish to migrate their ZSE listing to VFEX.
The exchanges said this exemption is intended to facilitate smoother transitions for companies that are simply relocating their secondary listing rather than exiting the capital market entirely.
The practice note took effect on April 2, 2026 and will remain in force indefinitely unless withdrawn by both exchanges.
The regulatory shift comes amid broader efforts to deepen Zimbabwe’s capital markets and attract foreign investment.
Reserve Bank of Zimbabwe governor John Mushayavanhu recently encouraged companies whose shares remain suspended on the ZSE to consider listing on VFEX, arguing that macroeconomic conditions have improved significantly.
“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 during a question-and-answer session following a presentation of the 2026 Monetary Policy Statement to members of Parliament.
He added that monetary reforms implemented over the past few years have reduced the market distortions that previously affected fungible shares.
“Against this backdrop, the risks that prompted the suspension of fungible shares have significantly diminished, creating room for alternative listing options such as the VFEX,” he said.
Three companies, Old Mutual Zimbabwe, PPC Zimbabwe and Seed Co International, have remained suspended on the ZSE since June 2020 after authorities argued that fungibility in their shares was being used to determine an unofficial exchange rate through the Old Mutual Implied Rate.
Analysts say the regulatory changes could accelerate the growth of VFEX by making it easier for multinational firms with foreign currency earnings to migrate their listings.
Investment analyst Tendai Chigariro said the new rules reflect a deliberate effort to position the VFEX as a gateway for international capital.
“The relaxation of migration rules sends a signal that policymakers want to deepen the USD capital market and make it easier for regional companies to operate from Zimbabwe,” he said.
Another analyst, Ms Rudo Nyamadzawo, said the simplified process could also help address long-standing market distortions.
“Through creating a clearer pathway from ZSE to VFEX, authorities are effectively providing an alternative platform for companies that prefer a stable currency environment,” she said.
Meanwhile, Old Mutual Zimbabwe says discussions with authorities regarding the future of its suspended shares remain ongoing.
The company’s group chief executive Mr Samuel Matsekete previously said engagements were continuing as stakeholders explore possible solutions.
“They negotiate and engage with the authorities here because the OML listing really is our holdings,” Mr Matsekete said.
“There have been a number of engagements to try and see if there can be a way forward that allows parties invested in the share or those that want to invest in the share to trade, but we still are having the share suspended.”
Analysts say resolving the status of suspended counters, particularly Old Mutual, could have far-reaching implications for Zimbabwe’s capital markets, potentially improving liquidity and boosting investor confidence.
