PRINCIPALS of the budding Victoria Falls Stock Exchange (VFEX) say mining companies are expected to drive new listings on the US$-denominated market in 2022, taking advantage of the bourse’s incentives to meet their capital demands.

This comes after VFEX’s parent company, the Zimbabwe Stock Exchange (ZSE), this week welcomed a new Exchange Traded Fund (ETF) listing while another one awaits the approval of the Securities and Exchange Commission of Zimbabwe.

“We have started the year on a good note. I am expecting new listings (on VFEX) from the mining sector because they export a lot so their foreign currency needs to be taken care of and other companies or markets that do exports. We hope they are going to take advantage of the Victoria Falls Stock Exchange,” ZSE and VFEX board chairperson Caroline Sandura told The Financial Gazette after the launch of the ETF by securities firm Morgan & Co.

VFEX, which offers an array of incentives particularly for exporting companies, has seen the listings of Seed Co International, Padenga Holdings and gold producer Caledonia Mining Corporation in the year that it has been operational. Companies that are listed on the exchange are allowed to retain 100 percent of their incremental export proceeds in foreign currency.

“It’s a record to have had three listings in one year so we are hoping to continue that trend,” Sandura said.
Mining companies in the country have shown increased appetite to list on the VFEX in pursuit of the lucrative incentives on offer.

Bindura Nickel Corporation (BNC) has indicated that it seeks to voluntarily delist from ZSE and migrate to Victoria Falls to utilise the competitive advantages on offer on the VFEX.

BNC said the VFEX listing would be critical for offshore investors intending to make long term investments.
“The enhanced exchange control regime for VFEX listings will be of benefit to the company through the increased export proceeds retention associated with incremental production. Shareholders, on the other hand, stand to directly benefit as their shares will trade in US$ with no restrictions on repatriation of dividends and disinvestment proceeds,” BNC’s board chairman, Muchadeyi Masunda, said in a circular last year.

This comes as Finance minister Mthuli Ncube last year said the government was planning to list at least one state entity on the exchange