Mines troop to VFEX

Source: Mines troop to VFEX | Newsday (Business)

BY MELODY CHIKONO

GOVERNMENT says several mining firms have indicated plans to list on Zimbabwe’s year-old bourse, the Victoria Falls Stock Exchange (VFEX).

VFEX, which exclusively trades in foreign currency, has largely disappointed, having secured only two listings since its inception.

These are Seed Co International, which listed last year, and crocodiles producer, Padenga Holdings, which joined a few months ago.

Speaking during an economic review webinar organised by the country’s leading business weekly, Zimbabwe Independent, Finance minister Mthuli Ncube yesterday said the listing drought would end soon, with mining giants moving to Victory Falls to raise foreign currency for their operations. The country has two operating bourses, the Zimbabwe Stock Exchange, which trades in Zimbabwe dollars and VFEX.

“For more than a decade now businesses have not been able to raise capital,” the Finance minister said.

“They find it futile to raise capital in local currency. VFEX addresses that aspect. We want a platform where the private sector can attract hard currency. We are going to see that in the coming years. VFEX is targeting the exporting companies but largely the mining sector. One of the mining companies have registered and we are expecting more mining companies to list soon. It is yet another innovation that is meant to support the process for financial access and we are deepening it to give it more options to foreign investors and companies. We are also looking at the diaspora where we are engaging them to be able to participate,” Ncube added.

The Treasury boss could not disclose which firm was planning to list soon, but the New York Stock Exchange-listed Caledonia Mining Corporation, which operates Gwanda-based Blanket Mine has indicated that it could head to Victoria Falls, while Invictus Energy, which is exploring for gas in Muzarabani, has also said it may consider a VFEX listing.

“We want to list a US dollar bond on VFEX soon but we cannot give you the  exact date yet  as the advisors  are  still fine tuning. I can’t also share the amount for now. We want to make sure that we develop a yield curve not just for domestic debt but also foreign debt on VFEX. We are really working hard on this,” he said.

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