Zimbabwe's New Dollar Exchange Surpasses 132-Year-Old Stock Exchange
Zimbabwe’s Upstart Dollar Bourse Overtakes 132-Year-Old Exchange
Mint
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Zimbabwe's Victoria Falls Stock Exchange (VFEX) has surpassed the Zimbabwe Stock Exchange (ZSE) in market value, driven by the historic $1 billion listing of Econet InfraCo Ltd. This shift reflects a growing preference for dollar-denominated assets amid economic instability, attracting international investors and changing the landscape of Zimbabwe's equity markets.
- 01VFEX's market capitalization reached $3.79 billion, surpassing ZSE's $3.4 billion.
- 02The listing of Econet InfraCo Ltd. accounts for nearly 25% of VFEX's total value.
- 03The shift indicates a structural change in Zimbabwe's equity markets, favoring dollar-denominated assets.
- 04VFEX is attracting foreign and institutional investors, while ZSE is increasingly reliant on local retail investors.
- 05VFEX plans to add at least four new listings this year.
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The Victoria Falls Stock Exchange (VFEX) in Zimbabwe has overtaken the Zimbabwe Stock Exchange (ZSE) in market capitalization, reaching $3.79 billion compared to ZSE's $3.4 billion. This shift follows the historic listing of Econet InfraCo Ltd., valued at $1 billion, which constitutes nearly 25% of VFEX's total capitalization. According to Mary Musariri, an equities analyst at MMC Capital, this transition reflects a structural reordering of Zimbabwe's equity markets rather than an economic expansion. VFEX has become a preferred platform for liquidity in hard currency, attracting foreign and institutional investors due to the stability of dollar-denominated assets and easier dividend repatriation. In contrast, the ZSE is increasingly dominated by local retail investors and is at risk of becoming secondary in the market landscape. VFEX's CEO, Justin Bgoni, expressed optimism about future growth, anticipating at least four new listings this year, although he noted the complexity in comparing the two exchanges.
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The shift towards VFEX may lead to increased foreign investment in Zimbabwe, potentially stabilizing the economy and providing better returns for investors.
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