Mthuli Ncube quizzed over future of Victoria Falls Stock Exchange

Mthuli Ncube quizzed over future of Victoria Falls Stock Exchange
Mthuli Ncube quizzed over future of Victoria Falls Stock Exchange

Mthuli Ncube quizzed over future of Victoria Falls Stock Exchange

Legislators in the National Assembly have quizzed Finance Minister Mthuli Ncube over the future of the Victoria Falls Stock Exchange.

The stock exchange was launched about a year ago (24 October 2020) to be the game-changer.

Its purpose is to help raise capital and also drive foreign direct investment into the country.

However, since the launch, the stock exchange only has two listed companies SEEDCO and Padenga.

The failure to attract more companies has seen legislators questioning its future.

Speaking during a question-and-answer session, Bulawayo East legislator Ilos Nyoni wanted to know if there is trade that is happening and whether the bourse has a future.

In his response, Finance Minister Mthuli Ncube assured the legislators that the bourse has a future and that more companies will be listing soon.

‘’I assure this House that the stock market has a great future indeed. So, if we have this number of companies being in new exchange, it is really a beatable record and there is trading on the Exchange.

‘’Just looking at the quality of these companies, if I will be buying these companies, certainly when I get a bit of money, I will – Padenga is a quality company.  Look at SEEDCO, it is a quality company that also has strong foreign ownership from French investment and indeed, New Caledonia is a global company.

‘’It is also listed on the New York Stock Exchange and the London Stock Exchange. Then Victoria Falls Stock Exchange, in the near future, you will see volumes speak out.

‘’We are determined to make sure it works. More recently, we signed a Memorandum of Understanding through the Exchange and the Dubai Gold and Commodity to strengthen the commodity side, especially the hard metals.

‘’Whether we are looking at chrome, iron ore or copper, we want these to be quoted on that Exchange so that it then becomes a hub for these hard commodities as well; the US dollar-priced commodities,’’ he said.

New Caledonia to list on Victoria Falls Stock Exchange

Meanwhile, the finance minister took the opportunity to reveal that New Caledonia will be listed on the Victoria Falls Stock Exchange soon.

He said this will be a positive development for the bourse.

‘’We are expecting a third company to come on board, which is New Caledonia, which again is a gold company which mines out of Matabeleland South, Blanket Mine but it also services on the New York Stock Exchange. We expect more companies to come on board over time.

‘’If this goes according to plan, we are targeting companies that are mainly forex earners in terms of their business. We want them to use foreign exchange to raise foreign currency capital as well as they expand their businesses.

‘’So, in the case of New Caledonia, this will be the first IPO, Initial Public Offering on both VFEX and ZSE considered together is the first kind of IPO in a very long time. So, this is a positive development indeed and we expect this stock market to follow, going forward regarding investment, both into our economy and into the region,’’ Mthuli Ncube said.

Will parastatals list on the Victoria Falls Stock Exchange?

Asked on whether there are parastatals that will also list on the bourse, the finance minister said they are having discussions with some of them along that route.

‘’We are currently having discussions with management of one our parastatals in the mining sector, which is to list on the Victoria Falls Stock Exchange.

‘’It is my hope that we will be able to do so within the next three months. There are mining sectors and they are earning foreign currency. So, this is going to happen,’’ said the minister.

Mthuli Ncube quizzed over future of Victoria Falls Stock Exchange