By Tanaka Gwanyanya
In a move set to endorse the Zimbabwe’s ongoing economic recovery process, Nedbank Zimbabwe has listed on the Victoria Falls Stock Exchange (VFEX), becoming the 5th financial institution to trade stock at the recently launched Vic Falls Stock Exchange.
The listing ceremony which attracted high profile guests from the finance and economic sector was held at the VFEX Offices in Victoria Falls on Friday.
Zimbabwe Depository Receipts (ZDRs) are Nedbank Group Shares held by 30,000 Zimbabweans and listed on the Johannesburg Stock Exchange.
The depositary receipt gives investors the opportunity to hold equity listed in foreign markets without the need to move funds beyond borders.
Addressing delegates at the listing ceremony this Friday, Finance and Economic Development Minister, Professor Mthuli Ncube who was the Guest of Honour noted that a well-functioning capital market is critical to the success of any economy.
“The link between economic development and established financial markets is not a fantasy. The listing of these Depository Receipts demonstrates confidence in our capital markets and is an important signal to both local and international investors that indeed our economic recovery and growth is well and truly underway,” he said.
Nedbank and VFEX highlighted the importance of the listing.
“This is an important signal for local and international investors that Zimbabwe is open for business. This is also a way for exposing investors to the investing world and it’s possible when the government and other stakeholders work together. When this happens the biggest beneficiary is the ease of doing business,” noted Mr Heresy Herry, a Nedbank representative.
Victoria Falls Stock Exchange Chief Executive Officer Justice Bgoni noted, “The listing of the Nedbank ZDRs offers various benefits to investors which include increased liquidity, a shorter settlement cycle as well as expanded options for both current Nedbank holders and those investors who intend to gain exposure to the market.”
The VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) and was launched in 2020 as an off-shore biased financial services centre, as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.
