Zimbabwe bourse seeks S. African investment

Zimbabwe's efforts to stabilize its economy and attract foreign investment have taken a significant step forward with the introduction of the ZIG, the country's newest currency. The ZIG is backed by gold and a basket of foreign currencies, representing Zimbabwe's latest attempt to combat inflation and establish a credible local currency regime. The Zimbabwe Stock Exchange (ZSE) and its subsidiary, the Victoria Falls Stock Exchange, are capitalizing on this momentum by showcasing their offerings to potential investors in South Africa. In a recent interview with CNBC Africa, Justin Bgoni, the CEO of the ZSE and the Victoria Falls Stock Exchange, highlighted the positive growth trajectory of the exchanges. Bgoni noted that the Victoria Falls Stock Exchange has seen significant year-on-year growth, with the number of listed companies increasing from 14 to 15, with plans to reach 20 listings by the end of the year. The exchange has attracted interest from a diverse range of companies, including those operating in Zimbabwe, dual-listed companies, and domestic firms. The Victoria Falls Stock Exchange's unique proposition as an alternative platform for trading in foreign currency has resonated with investors. Bgoni explained that some companies have migrated from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange to benefit from a more stable currency environment. The exchange's flexibility in terms of reporting and regulations has made it an attractive option for companies seeking to raise capital. With the introduction of the ZIG, the Victoria Falls Stock Exchange faces new opportunities and challenges. Bgoni highlighted the impact of the new currency on the exchange, which now operates in ZIG prices. While it is still early days, Bgoni expressed optimism about the stability of the ZIG and its potential to facilitate capital raising on the exchanges. The move towards fiscal and monetary discipline by the government has also been welcomed by investors, with hopes for a more stable economic environment. Despite the positive outlook, some investors remain cautious about the introduction of the ZIG, given Zimbabwe's history of currency volatility. Bgoni reassured potential investors by emphasizing the tangible reserves backing the ZIG and the government's commitment to fiscal discipline. He pointed to the track record of the new governor as a positive indicator for the currency's stability. Looking ahead, the Victoria Falls Stock Exchange aims to position itself as an international financial center, with plans to establish a commodity exchange and attract global investors. Bgoni stressed the importance of collaboration with other stock exchanges in the region, such as the Johannesburg Stock Exchange, to facilitate cross-listings and drive growth in the bond market. As Zimbabwe navigates policy uncertainty and works towards a more stable economic environment, the Victoria Falls Stock Exchange remains focused on its growth targets and aims to create a thriving ecosystem for investors. With a commitment to flexibility and investor protection, the exchange is poised to play a key role in Zimbabwe's economic revival and attract international capital.