The Victoria Falls Stock Exchange (VFEX) is a small stock exchange headquartered in Victoria Falls, Zimbabwe. It was established in 2020 as a subsidiary of the Zimbabwe Stock Exchange (ZSE) to operate in the Victoria Falls special economic zone.

There has been a notable increase in interest in the VFEX, both from an issuer and investor perspective. Whilst the local currency denominated ZSE has being facing challenges  including high transaction costs and acute regulation, the VFEX has remained largely stable as it is has not been susceptible to abrupt policy changes and currency volatility. At launch, VFEX was sold as the destination for investors seeking exposure to foreign capital. in July 2023, VFEX is doing just that, even though it is at the expense of the older exchange.

VFEX closed the year 2022 on a higher note with market capitalization at US$ 411 million as the bourse continues to attract high-end firms in mining, manufacturing, and financial services. Activity on the bourse increased notably in 2022. This was a function of more listings on the bourse and increased foreign currency liquidity in the formal market, available for trading purposes. Turnover volumes advanced 1,500% year to 31 December 2022, while turnover volumes grew 1,702% from US$25,736 to US$463,855. Market capitalization increased 118% over the year from US$259.7mln to US$566.0mln.

By the end of the year 2022, there were 8 counters trading on the bourse, with a handful of pipeline migrations from the ZSE platform. As at 13 July 2023, the bourse hosts of Padenga Holdings Limited, Caledonia Mining, Bindura Nickel Corporation, Simbisa Brands, Nedbank ZDR’s, Seedco International, National Foods and the African Sun Limited, Axia Corporation, First Capital Bank, Innscor, WestProp Holdings Limited.

In 2023 companies continue to migrate from the ZSE to VFEX. Zimplow Holdings Limited will join the 12 companies already trading. It is expected to delist from the Zimbabwe Stock Exchange (“ZSE”) on Wednesday the 12th of July 2023, followed by its listing on the VFEX on Friday the 14th of July 2023.

Below are some of the reasons why companies are leaving ZSE for VFEX

• Lower trading costs and increased liquidity-VFEX's trading costs of 2.12% are lower than the ZSE's 4.63%. This means shareholders can keep more of their capital, potentially making trading in the share more active. It's easier to move money in and out of VFEX.

• The Government’s increase in the retention ratio for exporters listed on the VFEX to 100% will enhance organisations ability to settle foreign currency liabilities and preserve value in an inflationary environment.

• Access to USD capital-On VFEX, the company has a better chance to raise equity capital in foreign currency to support capital expenditure, working capital and regional expansion.

• The dispensation for foreign investors to repatriate proceeds from the disposal of shares is attractive to both existing and future investors.

• The VFEX provides favourable tax incentives for investors enabling the optimisation of returns. These include zero capital gains tax on VFEX resident and non-resident investors and a 5% dividend withholding tax for foreign investors.

• Reduced valuation volatility caused by currency translation-VFEX’s USD valuation allows shareholders to realise the true value of their investments and get a more accurate benchmark of the stock’s performance while mitigating valuation volatility.