Victoria Falls Financial Services Centre set to get operating licences

Zimbabwe is poised to issue the first operating licences under the Victoria Falls International Financial Services Centre (IFSC), marking a significant milestone in the country's efforts to establish itself as a regional financial hub and attract international capital.

The move signals the transition of the ambitious project from policy formulation to implementation, as authorities seek to position Victoria Falls as a gateway for global financial services and investment into Africa.

Speaking on the development, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube said the regulatory framework governing the centre is now in place and that the first licences are expected to be issued within weeks.

"The rules for the operationalisation of the International Financial Centre are now in place. We have a board in place, and in the next two weeks, we'll be issuing our first licences under the International Financial Centre," said Ncube.

"We want this to be a model offshore financial centre in the region, in Africa, and one that can compete with similar international financial centres around the world."

Ncube said Zimbabwe had undertaken extensive benchmarking exercises to study successful international financial centres and identify best practices that could be adapted locally.

According to the minister, Zimbabwe has benchmarked its model against established financial centres in the United Arab Emirates, Hong Kong, Mauritius and the Isle of Man.

He added that Zimbabwean officials had also studied emerging financial centres such as those being developed in Vietnam, which he said offer useful lessons due to similarities in developmental trajectories.

"Our executives have been travelling extensively to understand how best to position our International Financial Centre," he said.

Analysts have welcomed the move, viewing it as an important step towards operationalising financial sector reforms and attracting foreign investment.

Economic analyst Nigel Chanakira said the issuance of licences would provide a practical mechanism for drawing international capital into Zimbabwe.

"It's a very good move because they are now operationalising policy. Once we start getting a number of operators coming to operate within the Victoria Falls Financial Services Centre, it becomes a mechanism for attracting international capital," he said.

However, Chanakira cautioned that Zimbabwe would be entering a highly competitive market dominated by established international financial centres.

He noted that Mauritius remains one of Africa's most successful offshore financial services jurisdictions and that Botswana has also positioned itself strongly in the regional market.

"We need to compare and contrast ourselves with Botswana and Mauritius, which are the nearest and most successful examples to date. We are playing catch-up; therefore, we must position ourselves to be more attractive than these two countries," he said.

Economist Julius Tapera echoed similar sentiments, arguing that the long-term success of the centre will depend on maintaining investor confidence and ensuring policy consistency.

"Overall, the centre's success will depend on its credibility, stability and access to correspondent banking relationships. It will also depend on ensuring that the special economic zone status is maintained for the location where the International Financial Centre has been established," said Tapera.

The Victoria Falls IFSC forms part of Government's broader economic reform agenda and aligns with President Emmerson Mnangagwa's "Zimbabwe is Open for Business" policy aimed at attracting investment and strengthening the country's integration into global financial markets.

The first licences may be limited in number, but analysts say they will serve as a critical test of whether Zimbabwe can convert regulatory reforms into a credible platform capable of attracting long-term international investment.

As the country enters an increasingly competitive market for cross-border financial services, the performance of the Victoria Falls International Financial Services Centre will be closely watched by investors, policymakers and financial institutions both within Africa and beyond.