Nelson Gahadza
THE Victoria Falls Stock Exchange (VFEX), a United States dollar-denominated bourse, is increasingly becoming the preferred exchange as it continues to evolve through new listings and new product development.
Since its inception in October 2020, VFEX has seen listings from various sectors such as mining, financial services, tourism, hospitality and clothing.
The bourse is also set to launch a real estate investment trust (REIT) category, with the Pfuma REIT targeting VFEX listing before the year ends, while also in the pipeline is the Eagle REIT.
VFEX chief executive officer Mr Justin Bgoni said the bourse continues to attract listings from both domestic and foreign companies, and is targeting more than six new listings by the end of this year.
“We anticipate welcoming more than six new listings this year, and the diversification of products will attract new investors,” he said.
Notably, the Australian Securities Exchange-listed Invictus Energy completed a U$10 million capital raise from Zimbabwean institutional investors and subsequently listed the issued Zimbabwe Depository Receipts (ZDRs) on the VFEX.
The pipeline of counters migrating to the bourse also remains steady, with Bridgefort Capital having announced its intention to move its listing to the exchange in the current year.
Mr Bgoni said the VFEX is creating a commodities exchange to provide an even broader range of investment opportunities for investors, and the commodities rules await gazetting by the Ministry of Finance, Economic Development and Investment Promotion.
“All key personnel for the commodities exchange within the VFEX have been assembled and are currently developing process flows and other procedures necessary for the commodities exchange,” he said.
The VFEX, in its recently published Q2 2024 newsletter, said the first half of 2024 went on positively as it continues to experience steady growth, at a time the market is performing well.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), established to kickstart the Offshore Financial Services Centre (OFSC), earmarked for the special economic zone in Victoria Falls.
“The VFEX Direct platform also continues to thrive as more and more investors leverage its convenience.
“We are actively exploring adding new security types to the exchange soon. This more comprehensive selection will give the investor more diversity to build a strong and well-rounded portfolio,” VFEX said in its newsletter.
The Pfuma Fund REIT, mainly sponsored by Simbisa Brands and Big Poppas Property, aims to list on VFEX this year and seeks to raise US$15 million.
Research firm Equity Axis, in its recent publication, said the real estate space in Zimbabwe, for some reason, continues to soar beyond expectations and the revised mid-term budget numbers revealed that both construction and real estate will exceed their initial growth projections by 2,8 percentage points and 1,3 percentage points, respectively.
“There is definitely a lot of activity going on in this space, and REITs are the easiest way for one to get exposure to this space, especially with minimal investments. However, investors are now spoilt with choices. Tigere Property Fund, listed on the Zimbabwe Stock Exchange, will be looking to do a rights issue very soon to purchase Highland Park Phase 2, whilst on the other hand, the Fidelity-sponsored Eagle REIT will be targeting its listing,” reads the Equity Axis report.
It noted that the choice to list on the VFEX is an interesting one, with promoters being lured by the stability that comes with that.
A United Kingdom-listed mineral explorer, Kavango Resources, is planning a secondary listing on the VFEX, which will also provide a platform for local and international investors to engage in
Zimbabwe’s mining and exploration sectors.
“A key part of our strategy is to promote local ownership in Kavango to share the rewards of future success. We believe that Zimbabwe’s potential for hosting a multitude of large-scale, bulk mineable gold deposits is immense,” said Kavango Resources chief executive officer Mr Ben Turney.
With a market capitalisation of US$1,26 billion and the ability to trade in US dollars and other convertible currencies, the VFEX is poised to become a vital player in Zimbabwe’s economic landscape.
By fostering a strong capital market, Zimbabwe can ensure that its wealth is shared among its citizens, paving the way for sustainable economic growth and development.
Experts say, through promoting local ownership and creating a vibrant capital market, Zimbabwe can unlock the full potential of its natural resources, benefitting both the economy and its communities.
According to stockbroking and research firm IH Securities, the VFEX market capitalisation grew by a marginal 1.79 percent in the month of July to close off at US$1,27 billion.
The All-Share Index increased by 2,25 percent, with National Foods posting a 17 percent price appreciation in the period.
The exchange saw a 437,82 percent increase in volumes traded, on the back of an 87,13 million Zimplow share block that changed hands within the month.
Total value traded, however, slid by 11,57 percent to US$3,09 million. Zimplow led in value traded, at US$1,05 million; followed by Innscor at US$0,73 million.