Story by Stanley James, Business Editor
THE drive to ensure investors have access to foreign currency for production is on track, with a United Kingdom-based gold mining firm, Kavango Resources, committing to local operations ahead of official listing on the Victoria Falls Stock Exchange (VFEX) this Friday.
Five years after its establishment, the foreign currency-denominated trading market will welcome its 17th counter this Friday in a landmark show of confidence by the investors.
Having started trading on the VFEX earlier this month, the official listing ceremony comes at a time the new firm has raised over four million United States dollars from the bourse for exploration at its Filabusi Gold Mining Project.
The Zimbabwe Stock Exchange, the parent company for the VFEX, attributes the latest listing to the efficiency of the resort-based market in raising foreign currency towards export-oriented projects.
“I can confirm that the official listing of Kavango Resources Plc on the foreign exchange denominated market will be done this Friday in a landmark development that serves to show investor confidence in the market in raising foreign currency required for domestic projects,” Chief Executive Officer, Zimbabwe Stock Exchange, Mr Justin Bgoni said.
University of Zimbabwe Business School Director Professor Albert Makochekanwa hailed the government for establishing the VFEX as an opportunity for the uptake of capital-intensive, but viable sectors of the economy.
“It shows confidence in Zimbabwe, generally it reflects commitment by companies to seek long-term capital to sustain domestic projects that require foreign currency, so listing on the Victoria Falls Stock Exchange facilitates that platform for increased foreign currency generation, and indeed this boosts confidence in the economy,” Director, University of Zimbabwe Business School, Professor Albert Makochekanwa said.
The VFEX, whose primary aim is to act as a market for entities that seek to raise foreign currency for production, boasts of key incentives such as lower trading fees, no capital gains withholding tax and lower withholding tax for external investors.
Furthermore, funds invested in the VFEX are designated as free funds, and no exchange control approval is required when transferring funds and securities traded are exempt from the Intermediated Money Transfer Tax two per cent charge.
