Government in talks with global lenders to support new stock exchange

17 Sep 2020

Zimbabwean authorities are currently in talks with numerous international investment banks to support a new stock exchange, Bloomberg reports.

The new Victoria Falls Stock Exchange (VFEX) will exclusively trade in foreign currency, said Finance and Economic Development Minster Mthuli Ncube. 

“The interest has been huge,” Ncube told an analyst briefing. He was reluctant to disclose further information.

VFEX is a fully-owned subsidiary of the Zimbabwe Stock Exchange (ZSE). It was recently issued with a license and would be denominated in foreign currency with the aim of targeting foreign investors as well as global capital markets, particularly in the mining industry.

Speaking at the briefing, sub-Saharan Africa economist at Renaissance Capital Yvonne Mhango said that a crucial need for foreign investors is that of being able to repatriate their capital. 

“What they want is a functioning stock exchange,” Mhango said.

At the event, Zimbabwe Stock Exchange Chief Executive Officer Justin Bgoni said that global banks will manage the clearing and settlement of trades, certifying investors’ funds as a result. 

The companies involved in the current discussions are based in Africa, Asia and Europe, Bgoni added.

VFEX will be based in the resort town of Victoria Falls, after which it is named, and will be open within “a couple of weeks,” said Bgoni, who will lead the bourse.