The establishment of the much awaited Victoria Falls Stock Exchange (VFEX) is taking shape following developments by the holding company, Zimbabwe Stock Exchange (ZSE) to invite essential stakeholders with interest in the new bourse to express in written applications, 263Chat Business reports.
The VFEX to be denominated in foreign currency is designed to attract foreign direct investment into the country and has already been tipped to turn the resort town of Victoria Falls into a modern offshore capital center.
In its latest statement on progress on the VFEX, the ZSE invites interested investment management firms, sponsors, securities custodians, securities dealers and securities transfer firms to express their interest in the project despite earlier institutional and legislative delays.
“ZSE is calling on the following stakeholders to express their interest to participate on VFEX ; Security dealing firms licensed by the Securities and Exchange Commission of Zimbabwe (SECZ), Securities dealers, accounting firms, banks, legal practitioners and investment advisers wishing to offer sponsor services, Custodian firms licensed by the SECZ and are part of clearing banks which are able to clear and settle transactions in United States Dollars, Securities transfer firms licensed by the SECZ and Investment management,” it stated.
The VFEX was from the onset meant to be run through the Zimbabwe Special Economic Zones Authority were it would enjoy some incentives which are crucial in attracting investment.
The ZSE has lost its glitter since Zimbabwe switched to its weak currency last year and despite that, the bourse recently lost over ZWL$ 40 Billion since reopening after a month-long suspension as investors continue to lose confidence due to political interference.
There have however been some concerns over the snail-pace approach in establishing the new Zimbabwe Investment Development Agency (ZIDA) which in accordance with section 31 of the Act should declare any area or premises to be a special economic zone.
Market watchers have in past few weeks raised skepticism of the VFEX project’ success citing the recent political developments in the country that have sent negative signals over Zimbabwe’s property and human rights record.
Last month, the ruling party Zanu PF called for the immediate removal of global conglomerate, Old Mutual (OM) from the country’s biggest bourse the ZSE accusing it of weakening the local currency through its implied exchange rate.
But analysts were quick to rubbish Zanu PF’s claims saying the implied rate was not invented by Old Mutual and could be used on any other commodity outside OM’s share price.