Browsing: companies delisting from ZSE

VFX to lose some of its magic
  • The VFEX or Victoria Falls Stock Exchange is Zimbabwe’s exclusively United States dollar only stock market which was launched 3 years ago.
  • The Zimbabwe Stock Exchange or ZSE’s main board has been shrinking because of companies migrating to the VFEX.
  • Companies in Zimbabwe constantly experience a shortage of foreign exchange to support their increasingly import reliant businesses.

The number of companies that are delisting from the main board of the Zimbabwe Stock Exchange, often known as the ZSE, and moving their operations to the ZSE’s hard currency equivalent, the Victoria Falls Stock Exchange (VFEX), has been growing. When the central bank eliminated the favorable foreign exchange retention levels that had been the primary draw of the VFEX, it is anticipated that the outflow from the ZSE will slow down in 2023. This comes after the central bank eliminated the foreign exchange retention thresholds.

Is Victoria Falls Stock Exchange capital market

Companies delisting from ZSE to list on VFEX.
  • The recent announcement of migration of African Sun Limited to the VFEX highlights the growing trend of local businesses shifting away from the ZSE and towards the more favourable investment environment provided by the VFEX.
  • With its flexible exchange rate controls, lower trading fees, and ability to raise capital in hard currency, the VFEX offers a unique opportunity for businesses to enhance their marketability and market capitalisation.
  • As more companies make the switch, the VFEX is likely to become the preferred choice for local businesses looking to raise capital and grow their operations.

Hospitality Group, African Sun Limited, has recently made the decision to migrate to the Victoria Falls Stock Exchange (VFEX), following a number of local business entities who have also made the switch from the Zimbabwe Stock Exchange (ZSE). This move has sparked discussions regarding the reasons behind the shift and the benefits of listing on the VFEX.…