The Zimbabwe Stock Exchange Holdings (ZSEH) has announced a series of initiatives aimed at strengthening operations at Victoria Falls Stock Exchange (VFEX).
ZSEH operates both VFEX and the Zimbabwe Stock Exchange.
Now five years old, VFEX has positioned itself as a strategic platform for foreign currency-denominated capital. The exchange’s market capitalisation climbed to just over US$2 billion this quarter.
However, with just 15 counters listed, ZSEH views the number of listings as low and says it is taking action.
“Despite notable progress, attracting new listings to the VFEX remains the most significant challenge,” ZSEH group chief executive officer Justin Bgoni said in a special newsletter celebrating the exchange’s five-year anniversary.
“This issue is not unique to Zimbabwe, but is common across many African markets, where companies are often hesitant to list due to limited market liquidity, regulatory complexity, and macroeconomic uncertainty.”
Bgoni said a range of strategies had been developed to enhance VFEX’s visibility and appeal.
“These efforts are focused on increasing market awareness, improving investor engagement, and demonstrating the tangible benefits of listing on VFEX,” he said.
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Over the next five years, ZSEH plans to expand VFEX’s offerings, deepen market sophistication, and enhance accessibility for investors and issuers.
“Our strategic focus will include establishing a dedicated platform for mineral commodities trading, supporting price discovery, value chain development, and investment in Zimbabwe’s rich mineral sector,” Bgoni said.
“Developing a derivatives market to provide investors with tools for risk management, hedging, and portfolio diversification, thereby enhancing overall market depth; launching a venture board to facilitate capital raising for start-ups and growth-oriented enterprises, fostering innovation and entrepreneurship.”
ZSEH will also accelerate digitisation on VFEX through advanced trading platforms and digital solutions, improving efficiency, accessibility, and participation for both local and international investors.
“Through these initiatives, VFEX seeks to strengthen Zimbabwe’s capital markets, attract new investment, and drive sustainable economic growth over the coming five years,” Bgoni said.
He said VFEX had been attracting growing interest from regional and international investors.
“A key milestone was the guaranteeing of Karo’s bond by a JSE-listed firm, demonstrating strong regional investor trust and active participation in VFEX offerings.
“More importantly, that capital raise was supported by one of the big banks in South Africa,” Bgoni said.
“Moreover, VFEX is engaged with several potential issuers on cross-listing opportunities, with discussions at various stages.
“These initiatives are expected to broaden market participation, enhance liquidity, and strengthen VFEX’s integration with regional and international capital markets.”
He said VFEX was building a robust, transparent platform designed to safeguard investments, improve liquidity, and offer diverse avenues for capital deployment.
“We are committed to actively engaging with our stakeholders to ensure the market remains relevant, responsive, and aligned with evolving investor and market needs,” Bgoni said.
“Through these efforts, VFEX seeks to foster confidence.”
ZSEH said VFEX had made a meaningful contribution to Zimbabwe’s economic and investment ecosystem.
“This capital has supported business expansion, infrastructure development, and industrial growth, thereby fostering sustainable economic progress,” Bgoni said.
“Beyond capital formation, VFEX’s activities have generated downstream economic opportunities, stimulating job creation, supporting local value chains, and reinforcing investor confidence in Zimbabwe’s capital markets.”
He said VFEX continued to play a central role in driving investment-led economic transformation.
“We are delighted to have introduced new products to the market, further diversifying and deepening Zimbabwe’s capital markets.
“A strong pipeline of upcoming listings and instruments is now in development, signalling continued growth and innovation,” Bgoni said.
“There is also increasing interest from regional markets, with more companies seeking to leverage VFEX’s US dollar-denominated platform.
“This rising regional appetite underscores VFEX’s role as a trusted and competitive gateway for capital raising and investment across southern Africa.”
The exchange has become particularly appealing to mining companies that are seeking to raise capital.
Since its launch in 2020, the VFEX has enabled several successful funding raising including that of Caledonia (US$12 million), Karo Resources (US$36 million, including US$25 million from local investors), Eagle Reit and Invictus (US$19.5 million each).
Investors particularly favour the bourse for its reliability with analysts noting that every trade since the VFEX’s inception has been settled on time, which has helped to build investor trust.
The VFEX was earmarked for the special economic zone in Victoria Falls and its trading currency is in United States dollars, which means that dividends are paid out in US dollars or any other convertible currency.
It was established through Statutory Instrument 196 of 2020, which provides that non-resident companies may list on the VFEX provided that any capitals raised by the company are from an offshore source.
To shield investors from exchange control risk, the statutory instrument also provides that all clearing and settlement for transactions on the VFEX would be done by the bourse either locally or offshore in terms in terms of clearing and settlement rules to be approved by the Securities and Exchange Control Commission in consultation with the Reserve Bank of Zimbabwe.
