The Victoria Falls Stock Exchange (VFEX) achieved a record-breaking milestone on Tuesday, posting its highest-ever daily turnover of USD$17,595,419.45 with a total of 54,920,505 shares traded.

This remarkable performance underscores the growing prominence of VFEX as a key player in Zimbabwe’s financial markets, offering a platform for companies seeking to raise capital in hard currency. The record turnover reflects increased investor confidence and highlights the growing appetite for dollar-based trading opportunities in the region.

Driving Factors Behind the Surge

Market analysts attribute this milestone to heightened trading activity, particularly in blue-chip counters listed on VFEX. The exchange, which is pegged to the US dollar, has attracted both local and international investors seeking a hedge against Zimbabwe’s economic volatility and currency instability.

“VFEX has proven to be a reliable platform for hard currency trading, and this record reflects its ability to attract significant investor participation,” said a financial analyst.

The exchange has also seen increased listings, with companies opting for VFEX to raise foreign currency while offering shareholders an opportunity to trade in a more stable economic environment. Recent efforts by the exchange to enhance liquidity and transparency have further cemented its reputation as a viable investment destination.

Strategic Importance of VFEX

Launched in 2020 as a subsidiary of the Zimbabwe Stock Exchange (ZSE), VFEX has positioned itself as a hub for foreign currency-denominated investments. The exchange offers tax incentives, including exemption from capital gains tax, to attract investment from international markets.

The VFEX milestone comes at a time when Zimbabwe is seeking to deepen its capital markets and attract foreign direct investment (FDI). As part of its strategy, the exchange is leveraging its location in the resort town of Victoria Falls, which has been designated a special economic zone.

Growing Investor Interest

The record turnover is expected to attract even greater attention from investors, both regionally and internationally. Experts believe the VFEX’s performance could set a benchmark for other exchanges in Africa, encouraging more companies to list and enhancing market liquidity.

With this achievement, the VFEX has demonstrated its resilience and potential to become a major financial hub in Africa, fostering economic growth and boosting investor confidence in Zimbabwe’s evolving capital markets.