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Victoria Falls Stock Exchange expects more listings

THE Victoria Falls Stock Exchange (VFEX) says it expects more listings this year and continues to roll out investment campaigns targeted at potential players.

SeedCo International is so far the only listed company on the foreign currency-denominated bourse, which was officially launched last October.

VFEX has since set a virtual mining masterclass targeting mining companies and individuals that may want to learn more about listing.
The free masterclass programme is scheduled for tomorrow and would see mining companies, small scale miners and individuals unpacking the listing process and its benefits.

The engagement would also cover aspects such as continuing obligations for listed entities, listing for exploration companies and the role of a sponsoring broker.

Finance and Economic Development Minister Professor Mthuli Ncube has said the establishment of VFEX was a key pillar in supporting efforts to grow Victoria Falls’ status as a special economic zone.

The launch of the foreign currency-denominated stock market also has a positive bearing on the country’s journey towards establishment of an offshore financial services centre.

The Government approved implementation of an offshore financial hub in 2012 before approving the SEZ concept. Since the launch of the facility, SeedCo International has been the only company that listed.

VFEX said it will continuously engage stakeholders who have a potential for listing to explain the process. Responding to emailed questions, Zimbabwe Stock Exchange head of business development Mr Anymore Taruvinga said interest from local and foreign companies who want to list remains high despite seemingly limited activity.

“VFEX has generated interest from both local and foreign companies and we have been engaging the potential issuers and we anticipate to get more listings this year. So far SeedCo International has listed on the VFEX.

“The VFEX mining masterclass aims to guide mining companies that have the potential to list and how they can do so on the VFEX.
“The masterclass will open up delegates to the process of listing, the benefits derived from being listed and continuing obligations of a listed entity,” said Mr Taruvinga.

Industry experts, which include financial advisors, sponsoring brokers and a listed entity are expected to share insights to participants.

“From experience we note that listing is not a familiar exercise and from time to time we have to engage our stakeholders and take them through the process,” he said.

The establishment of the VFEX is one of the many initiatives implemented by the Government to stabilise the economy and attract foreign direct investment.

The platform is seen as a gateway for companies in Zimbabwe, Sadc and the rest of Africa to raise capital in foreign currency and also provide investors to trade in the secondary market in hard currency.

All global companies invested in Zimbabwe can seek listing on VFEX. Investors who participate on the VFEX will benefit from the ability to move their capital and dividends in and out freely, low transaction costs, tax incentives that include five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks. Chronicle

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