VFEX boost for Victoria Falls tourism

Leonard Ncube in Victoria Falls

THE tremendous growth of the Victoria Falls Stock Exchange (VFEX), which has seen the bourse attracting seven listings in its first two years is a huge boost for marketing of the country’s prime tourism destination.

Established in 2020 as a special economic zone in line with Statutory Instrument 196 of 2020, VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) and the only exchange in Africa trading in the United States dollars.

Through VFEX, Zimbabwe seeks to become an offshore financial services centre for the region and for the city of Victoria Falls, this is critical in attracting tourists and new investments.

Development of a robust financial system with the capacity to mobilise both domestic and foreign capital is critical for a country aspiring to reach an upper middle-income status by 2030.

In an interview Victoria Falls town clerk, Mr Ronnie Dube, said the growth of the exchange is synonymous with the growth of the city, which has started reaping positive results from the VFEX. He said the city and VFEX share the same drive as they were both born in the same year in 2020.

“The fact that people are listing on the VFEX becomes public knowledge locally and internationally and this has had an impact on people to want to come and see the place where the stock exchange has been trading,” said Mr Dube.

“Yes, I can say with confidence that we are beginning to see the positives from the VFEX in relation to the marketing of Victoria Falls as a tourist destination.

“So, we have quite a lot in common, which is quite symbiotic and what that means is that there is so much confidence in the city itself and in the stock exchange and more importantly in the local economy of the country,” he said.

“The people are brought in to know that such a company is listed on the VFEX and to know where Victoria Falls is. Naturally these occasions where companies come to list on the Victoria Falls Stock Exchange bring growth to the industry itself because they book in hotels and use our infrastructure and they leave money behind.”

Since October 2020, the bourse has attracted seven listings with the eight expected to list next week Friday.

Platinum producer, Karo Mining Holdings, on Friday listed its bond on the VFEX to become the first debt instrument, 3rd listing in 2022 and 7th issuer on the two-year old bourse.

The other listings are seed producer and distributor, SeedCo International Limited, mining giant Caledonia Mining, skins and meat processor Padenga and Bindura Nickel Corporation, Nedbank Zimbabwe and international food outlet, Simbisa.

Officiating at the listing ceremony in Victoria Falls last Friday, Finance and Economic Development Deputy Minister, Clemence Chiduwa, applauded the tireless efforts of the regulatory teams from both the securities and exchange commission of Zimbabwe and VFEX for ensuring continued growth and success of the exchange, as he thanked Karo Mining Holdings team for choosing to list on VFEX.