The Victoria Falls Stock Exchange (VFEX) turnover for the year to December 31, 2022 surged 1 700 percent to US$463 855 as both issuer and investor interest increased.
Total market value jumped 118 percent to US$259,7 million from US$566 million as more counters joined the US dollar denominated bourse.
The VFEX has remained largely stable as it is not susceptible to abrupt policy changes and currency volatility.
By the end of the year 2022, there were eight counters trading on the bourse, with a handful of pipeline migrations from the main bourse – the Zimbabwe Stock Exchange (ZSE).
The bourse hosts Bindura Nickel Corporation, Caledonia Mining Plc, Karo Bond, National Foods Holdings, Nedbank ZDRs, Padenga Holdings Limited, Seed Co International and Simbisa Brands Limited.
VFEX was launched in 2020 as part of efforts to attract global capital, restore foreign investor confidence in Zimbabwe’s capital markets and assist companies raise foreign currency capital.
The bourse has experienced rapid growth in recent months and apart from attendant value opportunities, policy arbitrage has also been pivotal in attracting migrations.
More listings are expected on the VFEX this year with Innscor, GetBucks, Axia and Seed Co Limited announcing their plans to migrate from ZSE to VFEX.
“As more companies’ foreign currency generation improves, especially those involved in consumer staples, tourism and hospitality, agricultural exporting and mining companies, we anticipate more listings on the VFEX in the current year (2023).
“Axia Corporation and Seed Co Limited are among the companies that have expressed interest in migrating to the VFEX early this year,” said FBC Securities.
The VFEX platform offers a number of incentives, including tax exemptions on capital gains and the ability to repatriate funds which has been a challenge in previous years.
“Investors participating on the VFEX benefit from the ability to move capital and dividends freely, low transaction costs, tax incentives and minimal currency risks,” said FBC Securities.