Categories: EconomyFinance

[Updated] Finance Minister shares more details regarding Vic Falls Exchange


Mthuli Ncube shared the mid-term budget review yesterday and in it is a bunch of interesting updates and government’s plan to revive our ailing economy. One of the projects announced with intent to help government get its paws on foreign currency is the Victoria Falls Exchange (VFEX).

The securities exchange was launched to in order to attract critical offshore capital to the economy. Details of the VFEX have been shared to the public in tiny pieces and before yesterday’s budget review we knew the following;

  • VFEX will be managed by Zimbabwe Stock Exchange;
  • ZSE CEO Justin Bgoni suggested those dealing with VFEX will be subject to different rules when it comes to taxation and repatriation of funds i.e participants are likelier to get tax concesisons and it will be easier to move money out of the country;
  • The exchange will have listings mainly from the mining sector;
  • ZSE is working with the RBZ and the government on a framework for repatriation of funds for foreign investors;

What’s new?

In the 2020 mid-term budget, the Victoria Falls Exchange was referenced again and this time the following details were revealed;

  • The VFEX will thus be operated from the central business district of Victoria Falls, and will seek to partner any exchanges or international investment banks;

In addition to this there is mention of “government incentives” which are not fully explained as follows:

  • Exemption from Corporate Income Tax for the VFSE;
  • Exemption from Capital Gains Withholding Tax on disposal of shares listed on the VFSE; and;
  • A lower rate of 5% on dividends payable to non-resident investors on the VFSE.

Where will the confidence come from?

Following the announcement of the VFEX I wrote the following;

…Zimbabwe ranks poorly in terms of ease of doing business and the failure to reform laws in this field and non-existent adherence to the rule of law doesn’t seem like an attractive formula when it comes to attracting money to a country.

Following the targeted persecution of Old Mutual and the Zimbabwe Stock Exchange by government officials over the past month – I doubt investors will be clamouring over each other to list on the Victoria Falls Exchange. Why? Well, the government could wake up and decide that they are closing VFEX and that ease of repatriation investors were promised goes out of the window because an individual(s) has decided that your activity is disrupting the economy.

Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, chat with us using the chat feature at the bottom right of this screen

View Comments

  • Noetes

    Cancel reply

    Leave a Reply

    Your email address will not be published.

Leave a Reply

Your email address will not be published.

Published by
Farai Mudzingwa

Recent Posts

PayPal will soon allow cryptocurrency trading & shopping

In a major move for the cryptocurrency adoption, US payment giant PayPal announced that it…

October 21, 2020

ZSE & SECZ want more retail investors – Stockbrokers will have to improve their online presence for that to happen

The Securities Exchange Commission of Zimbabwe (SECZ) and Zimbabwe Stock Exchnage have made it clear…

October 21, 2020

Electric vehicles & how their adoption in Zimbabwe could be accelerated

Electric vehicles (EVs) have been the subject of debate for the last decade or so.…

October 21, 2020

HP CEO says remote work will allow companies to hire more internationally

The future of work has been a huge talking point for the whole world this…

October 20, 2020

3 ways Zimbabweans in South Africa can send groceries back home

Late last week Vaya and Thumela eKhaya announced a partnership that offers Zimbabweans in South…

October 20, 2020

Tisu vanhu vacho episode 3 – Jah Prayzah, the trials of dating in Harare & “life”

Tisu vanhu vacho, vanhu vacho vapi? The people behind Techzim’s articles, videos and social media.…

October 20, 2020