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Mnangagwa in Victoria Falls for Caledonia VFEX listing

by Staff reporter
02 Dec 2021 at 05:32hrs | Views
PRESIDENT Mnangagwa will be in Victoria Falls today to officiate at an event to mark the official listing of Caledonia Mining Corporation on the Victoria Falls Stock Exchange (VFEX).

The foreign currency denominated bourse continues to attract investors following launch in October last year.

Already two giant companies, SeedCo International and Padenga Holdings, have listed, with Caledonia to become the third today.

The establishment of VFEX, a wholly owned subsidiary of the Zimbabwe Stock Exchange (ZSE), and trading exclusively in foreign currency in Victoria Falls, is strategic to attracting foreign direct investment and buttresses the country's desire to attain a middle-income status by 2030.

ZSE chief executive Mr Justin Bgoni yesterday said there was a healthy pipeline, which will see VFEX growing.

"Two counters have listed, that is SeedCo Limited and Padenga Holdings and an additional counter, Caledonia Mining Corporation will be listed on 02 December 2021," he said.

"The President of the Republic of Zimbabwe, His Excellency Dr Emmerson Dambudzo Mnangagwa will be officiating the Caledonia Listing Ceremony. We are excited by the milestones we have achieved within one year of being established," said Mr Bgoni.

ZSE and VFEX staff were yesterday busy running around with preparations ahead of the big day.
The President is expected to tour the VFEX offices in the city centre while proceedings will take place at Elephant Hills Hotel.

He said through the support from the Government, VFEX offers incentives both for issuers and investors.

The foreign currency denominated stock market has a positive bearing on the country's journey towards establishment of an offshore financial service centre.

The platform is seen as a gateway to companies in Zimbabwe, Sadc and the rest of Africa to raise capital in foreign currency and also provide investors to trade in the secondary market in hard currency

All global companies invested in Zimbabwe can seek listing on the VFEX.

Investors who participate on the VFEX have an opportunity to move their capital and dividends in and out freely, low transaction costs, tax incentives that include five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks.

Mr Bgoni said it was encouraging when companies such as Caledonia Mining Corporation with an international stature come through to raise money on the exchange and are also benefiting from the incentives that have been put in place through the Government of Zimbabwe.

"We appreciate the overwhelming support from the Government since the establishment of VFEX and we will continue to work hard towards getting more listings. We have a healthy pipeline which will see the growth of the VFEX.

"The addition of Caledonia is a positive step that aids in growing the exchange and increasing investor participation and confidence," he said.

A number of businesses including banks such as CBZ Holdings have also shown interest to invest on the Foreign Currency denominated bourse.

Government also desired to raise funds through issuing bonds worth a total of US$3,5 billion that will be sold on the VFEX.

VFEX also adds to the allure of the country's prime destination and home to one of the Seven Wonders of the World, to greatly aid attraction of global capital, particularly aimed at raising funds for the mining sector, one of the mainstays of the economy.

New traders should be encouraged by dangling of special incentives by Government whose thrust is to grow the city which falls under a double finance and tourism Special Economic Zone.

VFEX recently signed a Memorandum of Understanding with Dubai Gold and Commodities Exchange to strengthen bi-lateral co-operation as well as exchange knowledge around commodities trading.

Source - The Chronicle
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