pulling out

Zimbabwe: ZSE sees mass exodus as firms move to Victoria Falls Stock Exchange

By The Africa Report

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Posted on March 30, 2023 14:46

© Stockbrokers trade on the floor of the Zimbabwe Stock Exchange (ZSE) in Harare, February 24, 2015. ZSE on Monday lifted the suspension of hotel group Meikles Africa after the company threatened to take court action, shelve new investment and a possible listing of a subsidiary. Meikles, which owns two premier hotels in the capital Harare and the resort town of Victoria Falls, was suspended last week to allow for an investigation on whether it overstated a debt owed by the central bank. REUTERS/Philimon Bulawayo — Stockbrokers trade on the floor of the Zimbabwe Stock Exchange (ZSE) in Harare, February 24, 2015. ZSE on Monday lifted the suspension of hotel group Meikles Africa after the company threatened to take court action, shelve new investment and a possible listing of a subsidiary. Meikles, which owns two premier hotels in the capital Harare and the resort town of Victoria Falls, was suspended last week to allow for an investigation on whether it overstated a debt owed by the central bank. REUTERS/Philimon Bulawayo

The Victoria Falls Stock Exchange (VFEX) has witnessed a torrent of listings in recent months, with several companies parting ways with the main Zimbabwe Stock Exchange (ZSE) to move to the foreign currency-denominated bourse. Analysts are subsequently sceptical about the ZSE’s future and dollar liquidity levels in the Southern African country.

Companies have been increasingly tempted by the VFEX’s incentives, including tax exemptions on capital gains and the ability to repatriate funds from Zimbabwe, where foreign currency is in short supply thanks to the Ukraine war’s spillovers.

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