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In a striking development that speaks volumes about Zimbabwe’s evolving financial landscape, Caledonia Mining Corporation Plc has revealed that it has raised more equity capital on the Victoria Falls Stock Exchange (VFEX) than on the prestigious New York Stock Exchange (NYSE), Mining Zimbabwe can report.
By Rudairo Mapuranga
The admission, made by Caledonia CEO Mark Learmonth, comes at a time when Zimbabwe’s mining sector is seeing renewed momentum in local capital markets, led by an increasing appetite for resource-backed investments on the VFEX.
Learmonth’s statement highlights a significant shift in capital-raising dynamics for mining companies operating in Zimbabwe.
“In fact, we’ve raised more equity on the VFEX than on the NYSE,” said the CEO. “Zimbabwe’s gold industry has been starved of capital for many decades… many of Zimbabwe’s gold mines are struggling to survive due to a lack of historic investment.”
For decades, Zimbabwe’s gold sector has grappled with underinvestment, policy volatility, and a lack of modernisation. Despite boasting some of the richest untapped gold deposits on the continent, the sector has largely relied on aged infrastructure and limited access to international financing. However, with the establishment and operationalisation of the VFEX—a United States dollar-denominated exchange located in the resort city of Victoria Falls—a new wave of financing has become available, presenting a more accessible, localised option for mining companies.
Caledonia’s listing on the VFEX in late 2021 was met with considerable interest. It was among the first mining companies to make the bold move, shifting its secondary listing from the AIM in London to the VFEX, in a bid to tap into local investors and raise US dollar-denominated capital within Zimbabwe. The results, according to Learmonth, have been more than satisfactory.
“International gold investors recognise that Zimbabwe has massive potential for world-class gold projects,” Learmonth said. “But many of those same investors are hesitant to commit funds unless they are confident of receiving dollar-denominated returns. That’s what makes the VFEX so important—it provides that structure.”
Caledonia’s success on the VFEX sends a strong message: Zimbabwe, once considered too risky for serious capital injection in the mining sector, is rebranding itself as a viable and increasingly attractive jurisdiction, provided the right incentives and market mechanisms are in place. The VFEX, backed by the Reserve Bank of Zimbabwe and designed to attract foreign capital, offers several key advantages: capital gains tax exemptions, the ability to repatriate profits, and trading in hard currency.
In his comments, Learmonth noted that other African jurisdictions, once considered the go-to destinations for mining investment, are now being viewed more cautiously due to rising geopolitical risks and regulatory unpredictability.
“It is also helpful,” he said, “that many other African jurisdictions that were previously favoured by investors are now regarded as being unattractive. Zimbabwe could turn this situation to its advantage with a few policy initiatives—the most important of which is the liberalisation of the foreign exchange market.”
This call for FX reform echoes sentiments shared by many mining executives and investors. Zimbabwe has made strides in easing capital controls, but concerns over forex retention thresholds and the interbank market’s lack of depth remain. Learmonth’s remarks make it clear: Zimbabwe’s gold assets are world-class, but the country must compete globally for investment dollars, and doing so requires clarity, predictability, and reform.
“If Zimbabwe can provide the right policy environment, it has every opportunity to emerge as a preferred mining jurisdiction,” he said, noting that international capital will flow to where risk is well-managed and returns are clear.
Karo Platinum: Another VFEX Success Story
Caledonia is not the only company making waves on the VFEX. Karo Platinum, a subsidiary of Tharisa Plc, is also using the platform to raise capital for its flagship platinum group metals (PGM) project in Mhondoro-Ngezi. In 2022, Karo successfully raised US$36.8 million through its first bond listing on the VFEX—a milestone that proved local capital could be mobilised effectively for large-scale mining development.
Now, as the company prepares for its second bond issuance, confidence in the VFEX as a resource-capitalisation platform continues to grow.
Speaking at a site visit attended by several financial institutions and potential investors, Karo Country Director Dr. Joe Zimba confirmed that preparations for a follow-up bond are in full swing.
“We’re scheduling one-on-one meetings with interested parties starting next week,” Dr. Zimba said. “That’s when we’ll bring in our finance director to walk through the bond structure—tenure, coupon, and other technical details.”
According to Karo, the new bond will feature structural amendments, including a revised coupon rate and extended tenure. An Extraordinary General Meeting (EGM) of current bondholders is being scheduled to approve the changes. Importantly, the bond is not linked to mine production timelines—rather, it is backed by corporate guarantees, making it more attractive to cautious investors.
Dr. Zimba also reiterated Karo’s commitment to transparency, sustainability, and delivery. With over US$160 million already invested in infrastructure, including power lines and bulk earthworks, the project is edging closer to production, even as global PGM prices experience short-term volatility.
“What we are building here is not just a mine,” said Zimba. “It is an industrial operation that will transform Zimbabwe’s platinum industry and contribute significantly to the national economy.”
Domestic Capital Markets Step Up
The experiences of Caledonia and Karo highlight a key theme: Zimbabwean capital markets, when empowered and supported by policy, can mobilise significant resources for mining development. This narrative stands in stark contrast to the long-held belief that only international markets—such as London, Toronto, or New York—can provide adequate capital for African mining ventures.
In fact, Caledonia’s experience shows that the VFEX has not only been competitive but in some respects, more fruitful than its global counterparts.
“We’ve raised more on VFEX than on the NYSE,” Learmonth noted, a statement that would have seemed implausible just a few years ago.
It’s a powerful endorsement of Zimbabwe’s attempts to localise its mining value chain—not only in terms of production and beneficiation but also in terms of financing. With rising calls for beneficiation, formalisation, and sustainability in the sector, having a strong domestic financial architecture is no longer optional—it’s a necessity.
Yet, Learmonth cautioned that capital will remain elusive if Zimbabwe fails to implement key reforms.
“Mining companies have choices,” he said. “Zimbabwe must compete globally for discretionary investment.” In a world where capital is increasingly selective, the message is clear: stability, transparency, and investor protection must be at the centre of Zimbabwe’s mining policy.
The Road Ahead
If Caledonia’s and Karo’s stories are anything to go by, then the VFEX is not merely a novelty—it is fast becoming the preferred vehicle for mining finance in Zimbabwe. The listing of bonds, equities, and new instruments on the VFEX has opened new pathways for Zimbabwean and regional capital to back resource development at home.
Still, the challenges are real. Zimbabwe must tackle forex retention issues, provide stable fiscal frameworks, and improve the ease of doing business. But the successes of VFEX-listed miners have proven that with commitment and collaboration between the public and private sectors, Zimbabwe can begin to reverse decades of underinvestment.
For Caledonia, the journey continues. With its Blanket Mine operations now contributing meaningfully to national gold output, and exploration and expansion underway, the company remains a pillar of Zimbabwe’s gold resurgence. And for the VFEX, it is validation—a homegrown financial platform can indeed compete with the world’s best, if given the tools to do so.
As Learmonth concluded, “With the right reforms, Zimbabwe has every opportunity to emerge as a preferred mining jurisdiction—particularly as investors grow wary of instability elsewhere on the continent.”
