Picture: 123RF / NATANAEL ALFREDO NEMANITA GINTING
Picture: 123RF / NATANAEL ALFREDO NEMANITA GINTING

Harare — Zimbabwe's markets regulator on Tuesday permitted  a US dollar-denominated stock exchange to operate in the resort town of Victoria Falls, part of efforts to attract foreign investors to a country grappling with severe foreign exchange shortages.

The Victoria Falls Stock Exchange (VFEX), which is owned by the Zimbabwe Stock Exchange (ZSE), was given a licence by the securities and exchange commission and is finalising listing and membership requirements.

Treasury officials say VFEX will initially target mining companies operating in Zimbabwe and other firms with foreign listings, including Old Mutual, PPC Zimbabwe and Seedco, which were suspended from the local bourse. Some have since resumed trading.

The VFEX is coming at a time many foreign investors are struggling to take out money from the ZSE.

In June, Zimbabwe further spooked investors when authorities abruptly suspended trading on the ZSE for over a month, accusing some investors of using the bourse to manipulate the local currency.

The government has said it plans to offer incentives to investors on the VFEX, including tax holidays.

Reuters 

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