Online Reporter
Tapiwanashe Mangwiro, [email protected]
ZIMBABWE’S capital markets have received a significant boost following the introduction of new streamlined rules designed to cut red tape for dual listed companies seeking to migrate from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFex).
Analysts say the move is strategically important, with the potential to strengthen the country’s United States dollar denominated market and attract investors seeking hard currency stability.
The new framework, outlined in a joint practice note issued by the ZSE and VFex, removes several regulatory hurdles that previously made such migration lengthy and complex.
ZSE chief executive officer Mr Justin Bgoni said the practice note provides a clear and simplified pathway for companies already holding dual listings to migrate their secondary listing from the ZSE to the 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, 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 migrating between exchanges are required to publish comprehensive listing documents outlining their financial position, governance structures 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 stock exchanges.
Companies seeking such dispensation are required to formally apply for a waiver and comply with any conditions imposed by the committee.
The changes also remove another significant regulatory step that had previously complicated migration between the two exchanges.
Ordinarily, companies delisting from the ZSE are required to publish a delisting circular and obtain shareholder approval through an extraordinary general meeting.
Under the new guidelines, this requirement will not apply to dually listed companies seeking to migrate their ZSE listing to the VFex.
The exchanges said the exemption is meant to facilitate smoother transitions for companies relocating secondary listings rather than exiting the capital market altogether.
The practice note came into 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 Dr John Mushayavanhu recently encouraged companies whose shares remain suspended on the ZSE to consider listing on the VFex, citing improved macro- economic conditions.
“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 the presentation of the 2026 Monetary Policy Statement to Parliament.
He said monetary reforms introduced in recent years had reduced 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 derive an unofficial exchange rate through the Old Mutual Implied Rate.
Analysts say the regulatory changes could accelerate the growth of the VFex by making it easier for multinational companies with foreign currency earnings to migrate their listings.
Investment analyst Mr Tendai Chigariro said the reforms reflect a clear policy intent 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 help address long standing distortions within the capital markets.
“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 said engagements with authorities over the future of its suspended shares were continuing.
The group’s chief executive officer Mr Samuel Matsekete previously said discussions were ongoing 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 Zimbabwe, could have far reaching implications for the capital markets, potentially improving liquidity and restoring investor confidence.
