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Zimbabwe will be aiming to attract global capital mostly from the mining sector when the Victoria Falls Stock Exchange comes into operation this week, Finance and Economic Development Minister Professor Mthuli Ncube said last Friday.
Minister Ncube revealed this while presenting the pre-budget strategy paper, themed “Building Resilience and Post Covid-19 Recovery in Harare last Friday ahead of the 2021 National Budget expected to be delivered sometime next month.
VFEX, to be operated by Zimbabwe Stock Exchange, will allow listed companies to raise and trade their stock in any convertible hard currency, limiting the exchange risk.
According to Prof Ncube there is a need for the creation of globally recognised stock exchanges in Africa, those that arise from environments that are devoid of any negative impact of exchange rate fluctuations.
He said the VFEX will be a Pan African bourse.
“In terms of the impact and the effects of the Victoria Falls Stock Exchange; why did we create it? We thought as a Government, there is no pan-African exchange that has global clout that is able to preserve values of companies in a globally recognisable and consistent way.
“So, we thought; let us create this platform (VFEX. So the Victoria Stock is a Zimbabwean stock exchange, but the vision is much bigger. We want a pan-African stock exchange for companies to raise capital through that stock exchange.
“They do not have to raise the capital in Zimbabwe, but from Australia and so forth, but the listing and quotation is on the Victoria Falls Stock Exchange, it is a global platform based in Africa for raising capital.
“And we are targeting the mining sector. That is a typical hard currency sector, they need mining equipment, which is bought in hard currency, even the insurance has to be in hard currency,” the minister said.
The Herald
