Mishma Chakanyuka, Staff Writer 
THE Treasury has announced that the rules governing the operation of the Minerals Commodity Exchange have been finalised, and trading is expected to begin shortly.
The exchange, which will be managed by the Victoria Falls Stock Exchange (VFEX), is set to be established in a special economic zone and will conduct its operations using the United States dollar.
The Minerals Commodity Exchange aims to increase international market access, boost productivity, enhance liquidity, and foster competitive pricing for Zimbabwe’s mineral resources.
Mthuli Ncube, Finance Minister
“In terms of the commodities exchange, we have promulgated the rules for that exchange, which is under VFEX, and we expect them to begin trading any time, targeting minerals such as gold futures, chrome, and even African currencies,” Finance Minister Mthuli Ncube told The Financial Gazette.
“I look forward to them taking off to start trading in various commodities on that exchange. That is what we have created it for.”
Ncube emphasised Zimbabwe’s role as a key player in the commodity sector, stating, “We are a strong commodity producer, in agriculture and hard minerals. Surely, we should be able to trade some of the minerals here in our own country.”
A minerals commodity exchange operates as a centralised marketplace where buyers and sellers can trade a variety of mineral commodities, functioning similarly to stock exchanges but focusing on physical commodities like gold, platinum, chrome, copper, and other minerals.
This initiative follows the successful launch of the Zimbabwe Mercantile Exchange, which has improved the efficiency of marketing agricultural commodities.
Plans for a minerals exchange were first announced in 2021 after the signing of a memorandum of understanding (MoU) between VFEX and the Dubai Gold and Commodities Exchange, a leading derivatives exchange in the Middle East. This MoU allows the Dubai exchange to provide technical support to VFEX in establishing the international commodities exchange in Zimbabwe.
Since its launch in 2020, which marked the beginning of the Victoria Falls Special Economic Zone, VFEX has been working to develop the commodity exchange, aiming to expand trading and investment opportunities on the platform.
Zimbabwe’s capital markets have seen notable growth in recent years, offering a variety of investment instruments.
The Minerals and Marketing Corporation of Zimbabwe has been collaborating with VFEX to set up the exchange, which is expected to unlock fair market prices for mineral producers.
The creation of this exchange is timely, as the majority of Africa’s mineral commodities are currently traded on foreign exchanges, including the London Stock Exchange and Dubai Gold and Commodities Exchange. newsdesk@fingaz.co.zw
