About Victoria Falls Stock Exchange
The Victoria Falls Stock Exchange (VFEX) is a subsidiary of the Zimbabwe Stock Exchange (ZSE) providing equity trading exclusively in US Dollars.
| Legal Name | Victoria Falls Stock Exchange Limited |
|---|---|
| Year Founded | 2020 (6 Years Ago) |
| Headquaters | Victoria Falls, Zimbabwe |
| Parent Company | Zimbabwe Stock Exchange (ZSE) |
| Trading Currency | United States Dollar (USD) |
| Key Executive | Justin Bgoni (Group Chief Executive Officer) |
| Market Index | VFEX All Share Index (VFEX-ASI) |
| Website | |
| Trading Hours |
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Background
The concept for an offshore financial hub in Victoria Falls was first approved by the Zimbabwean government in 2012, predating the formal approval of the country's Special Economic Zones. The resort town was subsequently designated as a specific hub for tourism and financial services under the special economic zones initiative.
The VFEX was officially launched on October 23, 2020. Trading, depository services, clearing, and settlement officially commenced shortly after, on Monday, October 26, 2020. The government noted at launch that the exchange was established as part of a broader strategic initiative implemented to stabilize the economy and attract Foreign Direct Investment (FDI).
Strategic Objectives and Incentives
The primary objective behind the creation of the VFEX was to provide a platform for companies in Zimbabwe, the Southern African Development Community (SADC), and the rest of Sub-Saharan Africa to raise capital in foreign currency. Furthermore, by utilizing the U.S. Dollar as its trading currency, the exchange aims to shield international and local investors from exchange control risks.
To encourage companies to list on the new exchange, the government offered several specific financial incentives:
- Tax Breaks: Companies benefit from lower taxes, specifically an exemption from capital gains withholding tax.
- Foreign Investor Incentives: A reduced 5 percent dividend withholding tax is applied exclusively for foreign investors.
- Regulatory Ease: Listed entities benefit from reduced exchange control restrictions.
Operations and Mechanics
The exchange is open to both local (Zimbabwean) and foreign investors. Market performance on the platform is tracked via the VFEX All Share Index (VFEX-ASI).
- Trading Hours: The market operates on weekdays (excluding public holidays) with a pre-open period from 09:00 to 09:30, continuous trading from 09:30 to 13:00, and a post-close session from 13:00 to 14:00/14:30.
- Settlement: The VFEX operates on a standard T+2 settlement cycle, meaning shares purchased on a Monday will reflect in the buyer's Central Securities Depository (CSD) account by Wednesday.
- Listing Mechanisms: Companies already listed on the primary Zimbabwe Stock Exchange (ZSE) have the option to either delist and move 100% of their shares to the VFEX or pursue a dual listing under specific regulatory conditions.
Leadership
The strategic direction of the VFEX is guided by its Board of Directors, which features Caroline Sandura as the Board Chairperson and Justin Bgoni as the Executive Director and Group Chief Executive Officer.
Companies listed on VFEX
- African Sun Limited (ASUN.VX)
- Axia Corporation Limited (AXIA.VX)
- Caledonia Mining Corporation Limited (CMCL.VX)
- Econet Infraco (INFR.VX)
- Edgars Stores Limited (EDGR.VX)
- First Capital Bank Limited (FCA.VX)
- Innscor Africa Limited (INN.VX)
- Invictus Energy Limited (INV.VX)
- Kavango Resources PLC (KAV.VX)
- Nedbank Group Limited (NED.VX)
- Padenga Holdings Limited (PHL.VX)
- Seed Co International Limited (SCIL.VX)
- Simbisa Brands Limited (SIM.VX)
- West Properties Holdings Limited (WPHL.VX)
- Zimplow Holdings Limited (ZIMW.VX)
Security Dealers
Trading on the platform is facilitated by a network of licensed securities dealing firms, including entities like Platinum Securities, Morgan And Company, and Old Mutual Securities.
