The Victoria Falls Stock Exchange (VFEX), to be launched tomorrow (October 23) in Victoria Falls, will boost investment in the tourism sector.
VFEX will trade in US dollars and has been granted approval to commence trading of securities on Monday (26 October) by the Securities and Exchange Commission of Zimbabwe. It will operate as a wholly owned subsidiary of the Zimbabwe Stock Exchange.
Safari Operators Association of Zimbabwe President, Dr Emmanuel Fundira, said most properties needed new investment, which ordinarily should happen every five years. “In simple terms, tourism businesses will now trade their stocks on VFEX and raise capital for refurbishments and equipment and other needs, which is a welcome development.
“Tourism has now been placed on a higher pedestal and is poised for meaningful and sustainable growth. This is a first in sub-Saharan Africa and, to some degree globally. It is indeed a milestone,” he said.
Zimbabwe’s Finance and Economic Development Minister, Professor Mthuli Ncube, said VFEX would be a conduit for portfolio investments as well as foreign direct investments into Zimbabwe.
“We want it to be a platform for trading securities in Africa in hard currency. As we know some companies come into the rest of Africa through destinations such as Dubai, Mauritius and any other jurisdictions and tax havens. So, why not a Zimbabwean jurisdiction or Victoria Falls jurisdiction?” said Ncube.