Vic Falls bourse unveils minerals trading platform

Nyashadzashe Ndoro

Chief Reporter

The Victoria Falls Stock Exchange has invited expressions of interest from potential participants in its commodities trading segment, marking a significant milestone in Zimbabwe's efforts to capitalise on its abundant natural resources.

The VFEX, established in 2020, aims to provide a platform for trading contracts for differences, debt, equities, and minerals. Following the gazetting of Statutory Instruments 148 and 149 of 2024, the exchange is now operationalising the buying and selling of minerals.

The invitation, issued by VFEX Head of Markets Robert Mubaiwa, seeks interest from various participants, including general commodity dealing companies, commodity dealers, warehouse operators, clearing companies, and market makers.

To participate, interested parties must register and meet specific criteria outlined in the regulations. These requirements include being registered, having at least one year of experience in trading commodities, and ensuring that principal officers meet stipulated qualifications.

The VFEX commodities trading segment will provide a licensed platform for trading minerals such as gold, diamonds, lithium, platinum, and coal. This move is expected to enhance transparency, efficiency, and investor confidence in Zimbabwe's mining sector.

The VFEX, a US dollar denominated bourse, located in the resort city of Victoria Falls, offers investors a market with reduced risks associated with currency fluctuations and inflation. This makes it an attractive destination for foreign investors seeking exposure to Zimbabwe's mining sector.

The commodities trading segment is expected to complement the existing equity market, providing diversification opportunities for investors. The VFEX has already made significant progress, listing several companies and facilitating trades.

Interested parties have until November 18, 2024, to express their interest on the VFEX website. Detailed information will be provided to successful applicants.

Zimbabwe is rich in minerals such as gold, platinum group metals, diamonds, chrome, ferrochrome, nickel, copper, iron, lithium, coal, coal, gas and oil among others.

The country is a host of more than 60 different types of minerals.

Interestingly, Australian-based energy firm, Invictus Energy Limited, which recently changed its designation to developer from explorer as it transitions to a producer, leveraging its gas and oil discovery in north-east Zimbabwe, is also listed on the VFEX.

Invictus made multiple gas-condensate discoveries at the Mukuyu Gas Field in northeastern Zimbabwe's Cabora Bassa Project in late 2023, paving the way for production.