Zimplow becomes 14th counter on Victoria Falls Stock exchange

THE listing of Zimplow Holdings Limited on the Victoria Falls Stock Exchange (VFEX) on Friday to become the 14th counter on the United States dollar-denominated counter, is a confirmation of the growth of the bourse.

The diversified company recently resolved to delist from the Zimbabwe Stock Exchange (ZSE) and have the company shares removed from the main board of the ZSE through voluntary termination of the listing in terms of Section 11 of the ZSE Listing Requirements.

Speaking at the official listing ceremony in Victoria Falls ZSE chair Mrs Caroline Sandura said the VFEX had attracted six listings since the start of the year which is a great milestone for the young bourse that was established in 2020.

“This has indeed been a tremendous year for the VFEX as today (Friday) Zimplow becomes the 14th company to list on the bourse. We are proud of the VFEX as we have had six issuers in the first half of the year,” she said.

Mrs Sandura said the listing of Zimplow represents a significant step to the counter’s growth trajectory.
She said VFEX is committed to creating a vibrant capital market in Zimbabwe and the listing of Zimplow is a clear indication of the growth and potential of the new bourse.

Mrs Sandura assured the company that the listing will create value for the firm which will enjoy the ability to raise capital in hard currency, trading on or offshore, enabling investors to repatriate their dividends, enjoyment of tax incentives by shareholders and potential investors, flexibility in raising external capital and lower trading fees for investors from the listing.

“I call on other companies to also leverage on these benefits and consider listing on the VFEX. The Special Economic Zone in Victoria Falls presents opportunities for investment as a leading financial services centre in Africa,” added Mrs Sandura as she commended the Government for creating an enabling environment that has attracted 14 issuers in only three years.

Established in the 1930s, Zimplow is the leading engineering company in Zimbabwe with years of providing innovative solutions to the agricultural, mining and construction sectors.

The company plays an important role in promoting sustainable development and social responsibility in Zimbabwe.

Its chairman, Mr Godfrey Manhambara said the listing will assist to enhance the export drive for the company that exports into the region.

“It is indeed a momentous occasion for us as Zimplow as we are taking this company onto a different level of growth, expansion and diversification while remaining true to our values and founding ethos.

“Zimplow is situated in the middle of other sectors and its exposure makes it a key pivotal player.

“We are very proud of what we have done in the past and we look forward to using those clusters to achieve what we want to achieve. We as Zimplow look at the benefits of visibility as VFEX is an entry into the Zimbabwe economy and we believe this bourse gives us the opportunity to raise that much needed capital much easier and quicker,” he said.

Added Mr Manhambara, “Migration to VFEX will enable the group to embark on capital raising initiatives in foreign currency thereby boosting the group’s efforts to acquire new original equipment manufacturers (OEMs) with respect to the three clusters (Agriculture, mining and infrastructure, logistics and locomotives.”

VFEX, launched in October 2020 is a subsidiary of the ZSE established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the Special Economic Zone in Victoria Falls.

It is part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency. Companies listed on the VFEX include Innscor Africa, Seed Co International Limited, Caledonia Mining Corporation, Padenga Holdings, Bindura Nickel Corporation, Nedbank Zimbabwe, Simbisa Brands Limited, Karo Holdings Limited, National Foods Limited, Axia Corporation Limited, West Property Holdings and First Capital Bank.

The fast-growing USD-denominated stock exchange is offering various incentives that include Government’s increase in the retention ratio for exporters listed on the VFEX to 100 percent, which has been an attractive factor for companies.

The platform enables companies in Zimbabwe, the Sadc region and the rest of Africa to raise capital in foreign currency.

All international companies invested in Zimbabwe can seek listing on VFEX.

The Government has committed that the VFEX will remain a foreign exchange market in line with Vision 2030. — @ncubeleon.