Almot Maqolo, Staff Writer 
THE Securities and Exchange Commission of Zimbabwe (SecZim) has implemented deterrent measures and moral suasion to stem the tide of Zimbabwe Stock Exchange (ZSE)-listed companies migrating en masse to the US dollar-denominated Victoria Falls Stock Exchange (VFEX).
This development follows the recent announcement by Edgars Stores of its intention to move its listing to the VFEX.
SecZim chief executive, Anymore Taruvinga, revealed to The Financial Gazette that deterrents put in place by the commission included a requirement for shareholders to vote on such moves, with majority shareholders excluded from the vote.
Anymore Taruvinga
Taruvinga pointed out changes to the VFEX listing rules, including a requirement for companies to demonstrate a minimum turnover from actual export earnings.
While Zimbabwe currently operates a multi-currency regime, a return to full local currency usage is anticipated by 2030.
The country’s market watchdog acknowledged the appeal of the VFEX, which previously offered 100 percent retention, an advantage not available on the ZSE.
However, this benefit has since been withdrawn from the VFEX, reducing its allure for issuers.
Economist Yona Banda recently suggested that migration to the VFEX is only a viable option for a select few companies.
He cited the lack of stability and confidence in the Zimbabwean dollar, the recent erosion of savings value, low economic growth, and high unemployment as factors that limit the ZSE’s role as a major platform for local investment.
Economist Vince Musewe concurred, noting that the migration trend is unsurprising, particularly for companies seeking to raise capital in foreign currency and attract international institutional investors.
He warned that if the top ten counters on the ZSE were to move, it could pose significant problems.
The was introduced in 2020 to drive domestic and international investment, key to achieving an upper-middle-income economy by 2030. newsdesk@fingaz.co.zw
