[ad_1]
Zimbabwe has announced plans to wear Victoria’s charm
It falls to open a new stock exchange, as part of a broader plan to convert
tourist city in an offshore financial center.
Finance Minister Mthuli Ncube said the appointment of
Victoria Falls as the International Financial Center (IFC) will provide the
industry with additional opportunities to hedge denominated currencies
products
This is meant to be in line with other offshore
centers in Africa, where Mauritius is a prominent offshore financial center. Globally
These centers are located in Ireland, the Caribbean, Luxembourg, Singapore, Hong
Kong and the Netherlands.
On Sunday, Ncube took to the social networking site Twitter to
announce that Zimbabwe will soon launch the Victoria Falls Stock Exchange
(VFEX) that will only be traded in foreign currency.
This is aimed at foreign investors and global capital,
especially the mining sector, he said.
“As a global stock exchange, VFEX will seek
partnerships with other global exchanges and partners around the world, and
become a truly global platform.
“International foreign companies investing in Zimbabwe can now
look for a list in VFEX, “said Ncube.
ZSE CEO Justin Bgoni said his office had not yet received the
finer details of the minister’s announcement, but hoped to get approval
operate in a special economic zone (EEZ) where regulations are more relaxed
and different from other parts of the country.
“If we are going to operate in a special economic zone there
are possibilities of obtaining tax concessions for both the stock market and
issuers
“It is also treated as a separate country, so you have
more flexibility in terms of movement of money inside and outside the country ”
Bgoni said by phone from Harare.
He said that the repatriation of funds was one of the things that the
new stock exchange would tackle.
“If you think about other countries, it’s usually good
link an offshore financial services center with your tourism, “he said.
The plans arise when foreign investors seem to have lost
appetite for the capital markets of the southern African country.
This year, foreign investors bought a monthly average of
just above $ 1 million in shares on the Zimbabwe Stock Exchange, below
from a monthly average peak of $ 26 million in 2013.
Significant changes in the exchange rate policy and lack of
repatriating capital gains and dividends have been cited as discouraging factors.
In February 2019, the authorities announced that all actions
trade in United States dollars would be valued from then on in the local market
Zimbabwean dollars at a 1: 1 exchange rate.
This resulted in huge losses for equity investors.
