Zim launches mineral commodities exchange on VFEX

Zimbabwe is set to launch a mineral commodities exchange on the Victoria Falls Stock Exchange (VFEX) before the end of this month.

This initiative is part of a broader effort to bolster capital flow into the country’s capital markets.

“The Victoria Falls Stock Exchange, apart from the already listed counters, is set to launch a minerals commodities exchange in the first quarter of 2024,” Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube told delegates at the Zimbabwe Capital Markets Conference in Shanghai last week.

“This is a welcome development as it will broaden the exchange and the country’s capital markets, as well as expand capital market services for the mining sector, which is projected to grow in excess of the US$12 billion target this year,” he added.

This comes as the ZSE has seen its market capitalisation lose nearly 21% of its value, in real terms, to end the first half of the year with a valuation of US$2,43 billion from US$3,07 billion at the start of the period.

The loss is attributable to the massive depreciation of the local currency that fell by over 50% during the period.

By trading minerals, the country’s largest source of foreign currency, actualising this commodities exchange will increase forex inflows into the local bourse and bring increased investment into the sector.

“The framework for the commodities exchange is reaching finality as the final draft rules are being reviewed,” ZSE said in its 2022 annual report released recently.

“Several workshops were held and key stakeholders including the Attorney General’s Office, ministry of Finance and Economic Development (MoFED), ministry of Mines and Mining Development, Minerals and Marketing Corporation of Zimbabwe attended the workshops.”

ZSE said that the workshops received buy-in from the different stakeholders groups that includes Zimbabwe Mining Federation and Zimbabwe Ferrochrome Association.

State media