The Victoria Falls Stock Exchange (VFEX) has signed a Memorandum of Understanding (MOU) with the Dubai Gold and Commodities Exchange (DGCX) as the two seek to strengthen bilateral cooperation and exchange knowledge around commodities trading.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) and is a US Dollar trading exchange.
Justin Bgoni, the VFEX chief executive, said the MOU will culminate into an exchange of ideas and technical know-how with a view to replicate the Dubai Gold and Commodities Exchange.
“We are looking forward to a fruitful exchange of ideas and the technical know-how that should culminate in us being able to replicate the success of the Dubai Gold and Commodities Exchange in our own country, and under the proposed VFEX –driven commodities exchange,” he said.
Bgoni said the DGCX is the region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement.
The DGCX Group owns and operates the region’s largest and only multi-assets Clearing House-Dubai Commodities Clearing Corporation.
Les Male, the chief executive officer of DGXX said the partnership with VFEX is part of a wider strategy to strengthen commodities trading across Africa.
“We are confident that our deep knowledge and expertise will help bring value to VFEX as they kick start the Offshore Financial Services Centre (OFSC) for the special economic zone in Victoria Falls,” he said.
He added that the partnership also builds on the group’s expanding international footprint and represents another opportunity to build stronger inroads into Africa, a rapidly growing market with enormous potential.
According to the MOU, DGCX will also support VFEX with the development of a clearing and settlement commodities exchange framework.
The agreement which spans for one year was signed during a high level Zimbabwean ministerial delegation, which also included the Minister of Finance and Economic Development, Professor Mthuli Ncube.
Zimbabwe is the second African country to seek an alliance with the DGCX. Earlier this year the Dubai-based exchange signed a memorandum of understanding with the Financial Markets Regulatory Authority in Sudan to boost gold trading between the two countries.