Victoria Falls Stock Exchange Limited granted license to operate

By Luckmore Safuli
THE Securities and Exchange Commission of Zimbabwe (SECZ) has granted the Victoria Falls Stock Exchange Limited (VFEX) to license to operate as a securities exchange in a development that is set to pave way for the launch of the much-anticipated exchange.
The granting of the license to the Victoria Falls has been done in accordance with the Securities and Exchange Act, Chapter 24:25. In a statement released this Tuesday, the Victoria Falls Stock Exchange Limited (VFEX) which is a wholly-owned subsidiary of the Zimbabwe Stock Exchange says it is now finalizing the listing and membership requirements.
ZSE Chief Executive Officer Mr Justin Bgoni said the granting of the license is a major step towards the launch of the exchange which is set to attract the much-needed Foreign Direct Investment into the country.
“We are happy to announce that we have been granted the license by the SECZ to launch the VFEX. The exchange is going to the different from the current stock exchange in many ways. Firstly it will trade in United States dollars and secondly, it allows companies to raise hard currency on the market and then they can utilize the hard currency to invest in Zimbabwe, employ more people and grow the economy,” he said.
According to the ZSE boss, the rules and regulations of the exchange are being finalized with input from the Reserve Bank of Zimbabwe, Securities and Exchange Commission of Zimbabwe and the Ministry of Finance and Economic Development.
“Now that we have a license the next step is to finalize the rules and regulations and on that we will be working with the SECZ, RBZ and Ministry of Finance. Will be making accouchements in the following few days,” he said.
Treasury has already outlined incentives to make the exchange attractive to investors. Part of the incentives include less tax on dividends and no capital gains tax. The VFEX will be denominated in foreign currency and targets foreign investors and global capital.