Yesterday, Friday 23 October, the Victoria Falls Stock Exchange was launched, making it the second stock exchange in the country. The development is meant to lure and retain investors and build confidence in currency and exchange control risks.
In terms of settlement and clearing, the Victoria Falls Stock Exchange will trade in United States dollars. The move comes at a time when investors are not only losing confidence in local investments but are also selling their stocks off ZSE. Between August and September, 80% of shares had been sold.
Some potential investors and economic analysts have lauded the idea of VFEX citing the need to attract more foreign capital to the economy, which the ZSE is not explicitly designed to do.
Finance Minister, Prof Mthuli Ncube has said the broader vision was to locate VFEX as a Pan-African gateway for offshore investments for the rest of Africa. Trading, Depository services, Clearing and Settlement on VFEX will commence on Monday 26 October 2020.