THE Vic Falls Stock Exchange Limited (VFEX) has been granted approval by the Securities and Exchange Commission of Zimbabwe (SECZ) to launch and commence trading of securities on the new stock market.
The official opening of VFEX is scheduled for Friday in Victoria Falls and will be operated by the Zimbabwe Stock Exchange (ZSE). Finance and Economic Development Minister, Professor Mthuli Ncube, will be the guest of honour. Trading, depository services, clearing and settlement on VFEX will commence on Monday.
Registered service providers on the exchange at the moment include 17 securities firms, 13 sponsors, seven asset managers and three transfer secretaries.
Zimbabwe will be aiming to attract global capital mostly from the mining sector when the VFEX comes into operation this week, Minister Ncube said last Friday. VFEX will allow listed companies to raise and trade their stock in any convertible hard currency, limiting the exchange risk.
According to Minister 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.
The Victoria Falls Special Economic Zone has created an opportunity for the setting up of the VFEX as a first step towards establishment of an offshore global financial services centre in the resort town.