from DANIEL JONES in Victoria Falls, Zimbabwe
VICTORIA FALLS, (CAJ News) – THE Victoria Falls Stock Exchange (VFEX) is to welcome its sixth listing, making it one of the fastest growing bourses, two years after its launch.
The foreign-currency denominated exchange has attracted five listings during the period.
Leading seed producer and distributor, SeedCo International, was the first to list, followed Caledonia Mining.
Skins and meat processor, Padenga, and Bindura Nickel Corporation, came on board later.
One of Africa’s top banks, Nedbank Group, recently became the fifth.
International fast food chain group, Simbisa Brands Limited, will also be listing this Friday.
Speaking at the listing of Nedbank recently, Finance Minister Mthuli Ncube said the listing of the bank’s Depository Receipts demonstrated confidence in Zimbabwe’s capital markets and is an important signal to both local and international investors for economic recovery and growth.
“I am happy to be witnessing this rapid growth of the Victoria Falls Stock Exchange.”
“The listing (of Nedbank) comes at a time when hopes for the revival of the economy are high. The capacitation of the capital market to take the lead in economic development provides the impetus for accelerated growth and development,” said Ncube.
He said for a country aiming for upper middle-income status by 2030, strong financial systems capable of mobilising both local and foreign money for investment in our productive sectors are required.
Capital markets help with resource mobilisation, risk management, price discovery and job development.
VFEX listed Nedbank’s Zimbabwe Depository Receipts (ZDR) issued by Corpserve Registrars.
The DR is an equity-like instrument, representing ownership of an underlying asset, in this case the Nedbank Group ordinary shares listed on the Johannesburg Stock Exchange (JSE).
Corpserve is a wholly owned subsidiary of Escrow Group.
Its participation in the Nedbank listing is landmark, this being the first unsponsored DR on the VFEX.
“This is a historic moment for our capital markets and our beloved nation of Zimbabwe. It represents another big step in our financial sector deepening,” said Escrow Group chief executive, Collen Tapfumaneyi.
VFEX seeks to increase the pool of securities on the bourse.
“The listing of the Nedbank ZDRs, offers various benefits to investors which include increased liquidity, a shorter settlement cycle as well as expanded options for both current Nedbank holders and those investors who intend to gain exposure to the market,” VFEX CEO, Justice Bgoni, said.
– CAJ News