The Victoria Falls Stock Exchange (VFEX) is positioning itself as a gateway to international capital entering Zimbabwe and other southern African markets. Will it take liquidity away from parent company the Zimbabwe Stock Exchange (ZSE), or are the two bourses complementary?
The VFEX was launched in 2020 as an “offshore” exchange where trading takes place in US dollars and other convertible currencies (the US dollar is legal tender in Zimbabwe and is used extensively). It is a 100% subsidiary of Zimbabwe Stock Exchange Holdings Limited, which itself is listed for trading on the Zimbabwe Stock Exchange (ZSE) and is also owner of the ZSE after a restructure in July 2025, as ACMN reported at the time. The ZSE has a 130-year history and traces its roots to an exchange which opened in Bulawayo in 1896. Trading on the ZSE is in Zimbabwe Gold (local abbreviation ZiG, international code ZWG) currency which was introduced as national currency in 2024.
After Econet InfraCo moved its listing onto the VFEX at the end of March, for a time the new exchange was larger than the old, as measured by market capitalization. Econet listed at a valuation of $1 billion and brought over trading activity and market capitalization. The change has resulted in lower market capitalization and less trading liquidity on the ZSE. Market participants markets, regulators and policymakers are supporting this.
Comparative size now
At the close of 15 May, the market capitalization on the VFEX was $3.4bn (US dollars). There are probably 18 listed companies, although the VFEX website only includes 15 listed companies and doesn’t yet include Econet. On 15 May there were 161 trades and turnover of nearly $1.4m. By comparison, on the ZSE the same day, market capitalization across the 55 listed companies was ZWG 88.2bn ($3.4bn) and there with 79 trades and ZWG 11.4m ($441,000) in turnover on 15 May.
According to this story in The Zimbabwean only 43 counters are traded on the ZSE – potentially the rest are suspended. The report quotes Mary Musariri, an equities analyst at MMC Capital: “VFEX has become the anchor for liquidity in hard currency, attracting foreign and institutional investors who value dollar stability and easier dividend repatriation.” She said the ZSE is increasingly dominated by retail and local-currency exposure.
Easing the switch to VFEX
On 2 April the ZSE and VFEX announced measures to make it easier for dual-listed companies on the ZSE to migrate their listings to the VFEX. They can apply for a waiver, which could mean they would not have to publish full listing criteria, publish a delisting circular on the ZSE or hold a shareholders’ Extraordinary General Meeting (EGM).
In a joint practice note issued on 2 April Justin Bgoni, CEO of both exchanges, says: “.. the VFEX Listings Committee in consultation with the ZSE Listings Committee considered and resolved to make it discretionary for dually listed companies with a secondary listing on the ZSE seeking to migrate such listing from the ZSE to the VFEX to publish full listing particulars. Applicants should formally seek for a waiver for this dispensation to be granted.
“While section 11 (3) of the ZSE Listing Requirements requires the publication of a delisting circular and obtaining shareholder approval, it shall not be necessary for dually listed companies with a secondary listing on the ZSE seeking to migrate such listing from the ZSE to the VFEX to publish a delisting circular or hold an EGM and obtain shareholder approval for that purpose.”
Move opens route for suspended ZSE companies
Three companies, including Old Mutual, were suspended on the ZSE in June 2020. According to this story in the Zimbabwe Herald, Reserve Bank of Zimbabwe governor John Mushayavanhu recently encouraged companies whose shares are still suspended on the ZSE to consider listing on the VFEX. He said macro-economic conditions have improved. The shares were suspended during years of extreme volatility in the Zimbabwe currency.
Mr. Mushayavanhu said monetary reforms introduced in recent years had reduced market distortions that previously affected fungible shares: “Suspended counters should consider listing on the Victoria Falls Stock Exchange because there is no longer that risk of currency volatility and the issues of implied rate, which resulted in the suspension.” He was speaking during a question and answer session following the presentation of the 2026 Monetary Policy Statement to Parliament.
“Against this backdrop, the risks that prompted the suspension of fungible shares have significantly diminished, creating room for alternative listing options such as the VFEX.”
The report quotes analysts that resolving the status of suspended counters, particularly Old Mutual Zimbabwe, could have far reaching implications for the capital markets and could improve liquidity and restore confidence. It cites investment analyst Tendai Chigariro: “The relaxation of migration rules sends a signal that policymakers want to deepen the USD capital market and make it easier for regional companies to operate from Zimbabwe.”
Old Mutual is listed on several exchanges, including London and Johannesburg, and some analysts were comparing Old Mutual’s share price in London and in Harare to compute an approximate real exchange rate – dubbed the Old Mutual Implied Rate (OMIR) – as they did not trust the official rates published by the Reserve Bank of Zimbabwe. Here is a great 2018 article by Tendai Motu that gives some background. The share suspension harmed local shareholders who could no longer sell or buy.
The trend to VFEX is not new. SeedCo was suspended on the ZSE at the same time in 2020 and the ban on trading in its shares was lifted after it became the first company to be listed on the Main Board of VFEX in October 2020. Seedco’s international operations excluding Zimbabwe are listed on the Botswana Stock Exchange.
Econet switched to VFEX ‘for fair valuation’, price fell
Econet InfraCo (ticker INFR.VX ), was admitted to the VFEX on 27 March as the 19th counter and has been trading since 31 March. When it arrived with a share price of $30.10 it had a $1 billion valuation and was Zimbabwe’s largest market debut, according to this story on African Markets. The price later rose to $33.10.
Since then its share price has fallen and by 14 May its share price was $25.43 and its market capitalization was $761m.
Zimbabwe’s Finance Minister Mthuli Ncube attended the listing ceremony and described the move as a strong signal to international investors, highlighting both the scale of the transaction and the robustness of the country’s regulatory framework.
Econet InfraCo is the infrastructure arm which was restructured from being part of Zimbabwe’s telecoms group Econet Wireless Zimbabwe. This story on Zimbabwe Herald quotes Econet InfraCo board chairman Godfrey Gomwe as outlined the 3 elements “TowerCo providing stable cash flows, PowerCo driving margin expansion through energy optimization, and PropertyCo unlocking value from strategic real assets.”
According to this story in Business Insider Africa: “Econet InfraCo now holds the group’s tower infrastructure, fiber assets, and expanding data centre operations. It has also been positioned as a central vehicle for (Econet founder Strive) Masiyiwa’s broader investment plans in Zimbabwe, including the proposed Econet Tech City near Harare Airport, a 40-villa luxury resort in Victoria Falls, and additional data centre expansion within the Tech City precinct.”
Much of Econet InfraCo’s cash flow is contracted deals for telecom infrastructure and energy solutions. It is can benefit from Zimbabwe’s growing digital economy, including rising demand for data connectivity and distributed energy infrastructure.
According to the AM story “The listing also marks Econet’s exit from the Zimbabwe Stock Exchange (ZSE), where it had been listed since 1998. Shareholders approved the delisting after concluding that the local currency-based market no longer accurately reflected the group’s value.
“Econet had been the largest and most liquid stock on the ZSE, accounting for roughly one-third of the exchange’s market capitalization at the end of 2025, with an estimated value of around $628 million. Its departure is expected to significantly reduce both market capitalization and trading activity on the ZSE.”
Not all is sunny on the VFEX – African Sun delisted
On 20 April, hotel group African Sun delisted its shares from the VFEX after buying back from its shareholders. It had listed in 2021 but has struggled with low liquidity and thin trading, according to this story in the Chronicle. African Sun chairman Lloyd Mhishi was quoted as saying in March “our market price does not reflect the company’s true performance or the inherent value of the properties we have worked so hard to integrate”. He added that investor sentiment is that the listing has not produced benefits such as efficient price discovery or effective capital raising opportunities. He said the decision was also influenced by the high costs of maintaining a public listing.
According to this story in Top Hotel news “(Mr Mhishi) commented at a recent company presentation: ‘We anticipate a marked increase in international travel volumes, and a rebound in conference and business tourism driven by strengthened domestic demand.’ He noted a more favourable regulatory environment, spurred on by the government’s publication of its tourism and hospitality policy”.
African Sun has sold hotels and other businesses which it does not consider core, including to the Public Service Pension Fund, and it was left with a portfolio of seven hotels including the 149-room Victoria Falls Hotel operating since 1904 and three hotels branded Holiday Inn.
According to African Sun’s announcement on 17 April, it had offered to repurchase the shares from 19 March to 9 April and received acceptances for nearly 4.4m of the shares held by the public, including 100,055 shares still held in share certificates and not deposited into the Central Securities Depository (CSD). This represents acceptance of 76% of the shares eligible for the offer and nearly $22.5m was to be paid to the selling shareholders net of any capital gains and transaction levies. The issued ordinary share capital of the company would be reduced from 14.8m shares to 10.4m shares.
Some shareholders still hold shares in what is now a public unlisted company. IH Securities was appointed to investigate how to facilitate over-the-counter (OTC) trading and an announcement was due within five weeks (22 May).
Zimbabwe or Victoria Falls stock exchange – who will win?
The challenge is low liquidity, poor pricing and unhappy investors and issuers. The currency volatility is not the only story, as African Sun indicates. In an ideal world, the strategy to develop both exchanges may result in liquidity spread across two pools. The Zimbabwean quotes Mr. Bgoni in March: “We feel ZSE is undervalued and therefore has a strong upside. VFEX is growing so also has upside. We are hoping that both happen.”