According to the CEO of Zimbabwe’s dollar-only bourse, the value of stocks on the exchange has risen by 85% since the start of the year to more than $1 billion, and he expects this trend to continue.
The Victoria Falls Stock Exchange (VFEX) was established in 2020 to entice international investors targeting export-oriented companies in Zimbabwe and other countries in the region as a hedge against a rapidly depreciating local currency.
It offers businesses stable financing as well as attractive tax breaks to their stockholders.
“The growth trajectory on VFEX has been tremendous,” said Chief Executive Officer Justin Bgoni recently, “and we anticipate continued growth until the end of the year.”
According to him, the market’s value has increased by 85% since the beginning of the year, and Zimbabwean investors have recently participated in capital raises by companies based abroad.
Zimbabwean investors’ demand for Caledonia Depositary Receipts exceeded supply by more than 50%. He revealed that Caledonia had raised $7.8 million rather than the $5 million that had been expected.
Last month, the miner raised $5.8 million through a VFEX placement.
Tharisa, a South African mining firm, raised $32 million through a bond issue for its Karo platinum mining project in Zimbabwe, according to Bgoni, making it the largest capital raise on VFEX to date.
Since its inception, VFEX has listed twelve companies, and that number is expected to grow as the market matures
