HARARE – Finance Minister Mthuli Ncube on Wednesday addressed concerns regarding companies delisting from the Zimbabwe Stock Exchange (ZSE) to join the Victoria Falls Stock Exchange (VFEX).
Ncube was responding to Zanu-PF legislator Clemence Chiduwa, who had raised the question in Parliament, highlighting the “cannibalism” of the ZSE by the VFEX.
Ncube assured them that a strict vetting process is in place for VFEX listings. He added that companies must meet specific criteria, including a strong export orientation generating hard currency income.
The policy, he said, aims to promote export-driven companies and attract foreign direct investment through VFex listings.
The Minister emphasised the rigorous nature of the VFEX approval process, stating that no company has been listed without satisfying the strict requirements. This assures that only companies meeting the government’s export and investment goals are granted access to the VFEX.
“Those guidelines are driven by policy and the policies that the companies ought to demonstrate are that they have a strong component in their revenues that is export-oriented, that is hard currency oriented because we want to make sure that we promote companies that export in terms of listing on VFEX.
“We also want companies to be able to show that they will be able to raise capital globally and abroad because we are trying to encourage foreign direct investment through the listings on VFex.
“So, I will say their criteria are quite strict. I do not think any company has managed to list on Vfex without having to satisfy those very strict criteria,” Ncube said.
The delisting of companies from the ZSE to the VFEX has sparked debate in Zimbabwe. While some view it as a positive development, attracting foreign investment, others fear it may weaken the ZSE.
The VFEX has witnessed a torrent of listings in recent months, with several companies parting ways with the main ZSE to move to the foreign currency-denominated bourse, which offers low tax benefits, stable currency and fungibility.
A few weeks ago, the leading clothing manufacturer and retailer, Edgars, successfully listed VFEX.
In 2022, Simbisa Brands migrated from ZSE to VFEX.
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