Zimbabwe
aims
to
expand
dollar-denominated
VFEX
into
financial
centre,
says
CEO© IntelliNews
State-owned
daily Chronicle cited
VFEX
head
Justin
Bgoni
on
September
23
as
saying
that
the
next
step
will
be
to
grow
the
platform
into
an
international
financial
services
centre.
“We
are
very
happy
with
what
we
have
seen
so
far
in
terms
of
new
listings,
in
terms
of
capital
raised,”
he
said.
“The
exchange
is
now
ripe
to
go
to
the
next
level,
where
we
can
raise
money
for
bigger
projects
that
can
help
the
country.”
VFEX
could
serve
as
the
anchor
for
a
future
international
financial
services
centre
in
Victoria
Falls,
modelled
loosely
on
hubs
such
as
Mauritius
or
Botswana’s
IFSC.
The
idea
is
to
cluster
banks,
insurers,
asset
managers
and
capital-market
players
around
a
USD-denominated
exchange,
leveraging
incentives
like
zero
capital
gains
tax
and
free
dividend
repatriation.
While
the
concept
has
strong
political
backing,
success
could
hinge
on
Zimbabwe
addressing
chronic
policy
instability,
building
credible
regulation,
and
generating
sufficient
liquidity
to
attract
global
institutions.
VFEX
has
17
counters,
including
gold
miner
Caledonia
Mining
Corp,
which
is
also
listed
in
New
York
and
London;
pan
African
seed
producer
SeedCo;
natural
gas
explorer
and
developer
Invictus
Energy,
which
is
primarily
listed
on
the
ASX;
and
crocodile-skin
producer
Padenga
Holdings.
Firms
listed
on
the
exchange
enjoy
a
number
of
incentives,
including
zero
capital
gains
tax,
flexible
repatriation
of
dividends
and
a
reduced
local
currency
risk
as
it
trades
in
the
greenback.
(Zimbabwe
debuted
the
gold-backed
ZiG
in
April
2024,
its
sixth
attempt
at
a
functioning
local
currency
since
2009).
Bgoni
recalled
a
recent
visit
to
VFEX
by
officials
from
the
Malawi
Stock
Exchange
who,
he
said,
were
surprised
to
learn
it
has
had
17
listings
in
five
years,
whilst
the
Blantyre-based
bourse
has
had
no
listing
since
2018.
Reuters reported
earlier
that
VFEX
turnover
stood
at
$15mn
in
Q2
2025,
with
average
foreign
participation
at
about
18.7%,
supporting
a
case
that
some
investors
use
VFEX
for
hard-currency
exposure
even
as
broader
market
caps
slipped.
VFEX’s
weaknesses
centre
on
thin
liquidity,
narrow
sectoral
concentration,
and
limited
investor
depth.
Daily
turnover
is
often
modest,
with
a
handful
of
mining
and
agro-export
counters
dominating
activity.
Whilst
its
USD
structure
is
unique
in
the
region,
and
it
has
grown
faster
than
some
peers,
it
remains
a
minnow
compared
to
larger,
more
liquid
markets
(such
as
Kenya,
Namibia,
and
Zambia).
Source:
Zimbabwe
aims
to
expand
dollar-denominated
VFEX
into
financial
centre,
says
CEO
Post
published
in:
Business