Chronicle Editor
Leonard Ncube, Victoria Falls Reporter
BUSINESS leaders here have applauded the decision by Government to launch the Victoria Falls Securities Exchange (VFEX) saying this will attract foreign direct investment to the prime resort town and enhance quick recovery of the tourism industry.
Victoria Falls has been designated as a hub for tourism and financial services under the Special Economic Zones (SEZ) initiative with a view of attracting tourists as well as luring investment through tourism.
Business leaders are convinced that a localised bourse in Victoria Falls not only shows devolution of the stock exchange market, but is a good move towards spreading investment flows into the country.
The VFEX will be denominated in foreign currency and targets foreign investors and global capital, especially the mining sector, said Finance and Economic Development Minister Professor Mthuli Ncube in a statement on Monday.
He said the opening of the securities exchange facility in Victoria Falls affirms the status of Victoria Falls as an offshore financial centre and reinforces the Government’s mantra that ‘Zimbabwe is open for business’.
“Government has already announced the launch of the Victoria Falls Securities Exchange (VFEX) in Victoria Falls in order to attract critical offshore capital to the economy to buttress local resources,” said Prof Ncube.
He said the VFEX will be managed by the Zimbabwe Stock Exchange, which operates Zimbabwe’s main bourse in Harare.
Prof Ncube said this was part of Government plan to turn the prime resort town into an offshore financial centre which provides industry with additional opportunities to hedge foreign currency denominated products.
The model is borrowed from countries such as Mauritius, Ireland, the Caribbean, Luxemburg, Singapore, Hong Kong and Netherlands that have established offshore financial centres.
Also posting on his twitter account, Prof Ncube said: “$18 billion stimulus: As a global securities exchange, VFEX will seek partnerships with other global exchanges and partners around the world and become a truly global platform.”
This means foreign global companies invested in Zimbabwe can now seek a listing on VFEX as well as direct investment in the country’s tourism industry.
Hospitality Industry Association (HAZ) Victoria Falls chapter chairman Mr Anold Musonza said the development will be a great game changer as the economy is forex-based and it will allow businesses within the industry to recapitalise easily and allow direct foreign investment.
Mr Musonza said establishing foreign exchange trade in Victoria Falls will further enhance it as the tourism hub for Southern Africa.
Employers Association for the Tourism and Safari Operators president, Mr Clement Mukwasi, said the VFEX is a good incentive for tourism.
“This means the Stock Exchange is now devolving to Victoria Falls as a Special Economic Zone. The fact that the bourse is going to be denominated in foreign currency gives certainty to the values that are going to be traded,” he said.
“This is very good incentive especially considering that we are trying to kick-start the tourism industry after the pandemic. Also liberation of use of foreign exchange within the exchange control unit is a welcome development which we think if well handled may bring good results that grow the economy.”
Tourism Business Council of Zimbabwe president, Ms Winnie Muchanyuka, said industry players and Government were set to meet to discuss implementation of the various Government initiatives.
Government has also availed a ZWL$500 stimulus for the tourism sector as well as waived the 14,5 percent Value Added Tax (VAT) payable by domestic tourists on accommodation and visitor services. — @ncubeleon.
Online Reporter