Online Reporter
Rutendo Nyeve
THE Victoria Falls Stock Exchange has facilitated substantial capital raises exceeding US$100 million across multiple sectors over the past five years, supporting expansion projects, strengthening corporate balance sheets and enabling long-term asset development.
This was revealed by Zimbabwe Stock Exchange group chairman Mrs Caroline Sandura at the listing ceremony of the Pfuma Real Estate Investment Trust (REIT) on the VFEX in Victoria Falls last Friday.
Speaking at the ceremony, Mrs Sandura highlighted the exchange’s growth trajectory since its inception.
“Over the past five years, the VFEX has facilitated substantial capital raises across multiple sectors, including mining and real estate of over US$100 million. These capital inflows have supported expansion projects, strengthened balance sheets and enabled long-term asset development,” she said.
“The cumulative capital mobilised during this period underscores the Exchange’s growing relevance as a funding avenue for corporates seeking stable foreign currency financing.”
The VFEX, which operates as a United States Dollar-denominated exchange, was established to provide issuers with access to stable capital and investors with exposure to diversified opportunities in a secure trading environment.
With the listing of Pfuma REIT, the exchange now boasts 18 counters, including two REITs, marking progress from its launch five years ago.
Mrs Sandura said beyond capital raised, the exchange has witnessed improved liquidity metrics, broader investor participation and increased visibility of Zimbabwean assets within regional and international markets.
“When compared to other exchanges across the region, the VFEX stands out for its US dollar denomination, investor-friendly regulatory environment and targeted incentives designed to attract both issuers and investors,” she said.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube expressed satisfaction with the growing confidence in the exchange and the economy at large.
“We have witnessed growing confidence first of all in our economy, in our investor market, but also growing confidence in the VFEX itself, and this confidence in the projects that the Pfuma Fund is investing in,” he said.
“They are investing in projects in Harare, which is a big metropolis but also venturing to smaller centres in the Midlands and other areas, and again this is pleasing to see the spread of investments taking place through such instruments.”
Prof Ncube said REITs and Exchange Traded Funds (ETFs) were introduced to address liquidity challenges, particularly for pension funds.
“The idea here was to give liquidity to investors. It’s quite easy for a pension fund to invest money and then the money is stuck in some building with tenants, and the pension fund can’t get out, neither can it pay its beneficiaries,” he said.
“So in order to really deal with this matter, we decided to introduce REITs, which will ensure that there is liquidity, there’s also transparency and governance, this is very important.”
Prof Ncube revealed that discussions are underway with global capital markets, including the New York Stock Exchange, to support cross-listings and deepen collaboration.
“The fact that we are now at number 18 in terms of listed instruments on VFEX is testimony to the interest that these foreign investors are showing, but also what domestic investors are showing,” he said.
“We are very keen to promote collaboration between our international financial centre with other global capital markets, such as the New York Stock Exchange for example. I was there on January 6 this year to speak to them, and they’re keen to collaborate to support cross-listings.”
The Pfuma REIT private placement was successfully oversubscribed, demonstrating strong investor appetite and confidence in the exchange’s regulatory framework.
