Comprehensive economic reforms under the Second Republic have started bearing fruit as witnessed by growing local and foreign investor confidence, President Mnangagwa said yesterday when he officially opened the Victoria Falls Stock Exchange (VFEX).
The event saw the first initial public offering on the foreign currency-denominated stock exchange by giant global investor Caledonia Mining Corporation Plc, the parent company to Gwanda-based Blanket Mine, one of the top gold producers in the country.
An initial public offering refers to the process of offering shares of a private corporation to the public in a new stock issue.
Caledonia is the third listing on the new foreign currency-denominated exchange in just over a year. It is also the first new listing in the Zimbabwean capital markets since 2016 and the listing offers an opportunity to Zimbabweans with access to foreign currency to share in the ownership of Caledonia as well as foreign investors.
The development buttresses Government’s drive to transform Victoria Falls into an offshore financial hub, as well as a hub for tourism and financial services under the Special Economic Zones initiative.
The idea behind the initiative is to attract tourists while serving as a conduit for portfolio investments and foreign direct investments into the entire economy.
Guided by the “Zimbabwe is open for business” policy and the drive to achieve an upper middle-income economy by 2030, President Mnangagwa expressed excitement over the positive response by local and foreign investors towards driving economic transformation in the country.
This is indeed a sure sign of the confidence that investors are placing in the policies of the Second Republic, especially considering that Caledonia is also listed on the New York Stock Exchange and in the United Kingdom, said the President in his keynote address.