By 
By Ross Moyo
The Victoria Falls Stock Exchange (VFEX) is emerging as a safe haven for companies whose shares were suspended from the Zimbabwe Stock Exchange (ZSE) amid suspected illegal trading.
The Reserve Bank of Zimbabwe governor, Dr John Mushayavanhu, has urged these companies to consider listing on the VFEX, citing that the risks that prompted their suspension have significantly diminished.
“The suspended counters should consider listing on the Victoria Falls Stock Exchange because there is no longer that risk of currency volatility and the issues of implied rate, which resulted in the suspension,” Dr Mushayavanhu said.
The VFEX offers several benefits, including trading in US dollars, relaxed listing requirements, and tax incentives, making it an attractive option for companies seeking a stable business environment.
The move is expected to boost investor confidence and enhance the country’s reputation as a destination for business and investment.
Three companies, namely Old Mutual Zimbabwe, PPC Zimbabwe, and Seed Co International, had their shares suspended from the ZSE in June 2020 amid concerns over fungibility of their stocks.
The suspension was meant to facilitate investigations into suspected illicit transactions involving the fungible stocks.
The VFEX has been attracting successful companies, including Padenga Holdings and Caledonia Mining Corporation, which have demonstrated the worth of the bourse through capital raises, mega profits, and sustained dividends.
The success of VFEX presents an opportunity for Zimbabwe to attract more foreign investment and enhance its reputation as a destination for business and investment.
The VFEX is regulated and governed by the Securities and Exchange Act [Chapter 24:25].
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