The Victoria Falls Stock Exchange (VFEX) is experiencing an unprecedented boom, with its benchmark index surging by a remarkable 45 per cent this year, propelled by a global rally in gold prices and shifting investor sentiment, Mining Zimbabwe can report.
By Rudairo Mapuranga
The dollar-denominated bourse, established in 2020 to attract foreign capital, has seen its market valuation climb to US$1.8 billion by the end of September. This performance is largely powered by a 48 per cent jump in gold prices this year, which has significantly boosted the stocks of mining companies listed on the exchange.
“Their stocks have become a proxy for gold,” said Lloyd Mlotshwa, head of research at IH Securities. “These companies invested well in time to catch the gold rush and have also ramped up production when the timing is right.”
The exchange’s robust performance is further fueled by a shortage of Zimbabwe’s local currency, the ZiG. According to market watchers, this liquidity crunch has driven investors away from the main Harare bourse and towards the dollar-only VFEX platform.
“ZiG liquidity is weak,” stated Mlotshwa. “Investors resort instead to using their dollars.”
The VFEX now hosts 17 listed companies. Recent additions include UK-based Kavango Resources, which became the third gold miner to list on the bourse last month. It joins other key players like Caledonia Mining Corp and Padenga Holdings.
The surge on the VFEX is prompting a portfolio reassessment among asset managers and pension funds, who are now under pressure to increase exposure to the “real value” emerging from the companies listed on the thriving exchange.
