Zimbabwean authorities are in discussions with several international investment banks to support a new stock exchange that will trade exclusively in foreign currency, Finance Minister Mthuli Ncube said. Picture: Reuters
Zimbabwean authorities are in discussions with several international investment banks to support a new stock exchange that will trade exclusively in foreign currency, Finance Minister Mthuli Ncube said. Picture: Reuters

Zimbabwe in talks with banks to support new stock exchange

By Bloomberg Time of article published Sep 17, 2020

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JOHANNESBURG - Zimbabwean authorities are in discussions with several international investment banks to support a new stock exchange that will trade exclusively in foreign currency, Finance Minister Mthuli Ncube said.

“The interest has been huge,” Ncube told an analyst briefing. He declined to give further details.

Yvonne Mhango, sub-Saharan Africa economist at Renaissance Capital, told the briefing that uppermost on foreign investors’ minds was the ability to repatriate their capital.

“What they want is a functioning stock exchange,” Mhango said.

The global lenders would handle clearing and settlement of trades, thereby guaranteeing investors’ funds, Zimbabwe Stock Exchange Chief Executive Officer Justin Bgoni said at the event.

The companies involved in talks are based in Africa, Asia and Europe, he said.

The exchange, to be known as VFEX and based in the resort town of Victoria Falls, will open in “a couple of weeks,” said Bgoni, who will also head the bourse.

BLOOMBERG

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