In sharp contrast to bleeding ZSE, VFEX emerges as a beacon of optimism
SAMANTHA MADE
In a stark contrast to the struggling Zimbabwe Stock Exchange (ZSE), the Victoria Falls Stock Exchange (VFEX), a US dollar denominated bourse, has emerged as a beacon of optimism and a rare bright spot in Zimbabwe’s financial markets.
As the ZSE continues to bleed from low turnover and investor flight, the VFEX is gaining traction as the preferred platform for both local and international investors seeking stability, liquidity, and US dollar-based returns.
The VFEX , a subsidiary of ZSE, recorded a total market turnover of US$58.5m in the first quarter of this year—a staggering 383% surge from US$12.11m in Q1 2024.
“We are encouraged by the strong performance, which reflects growing investor confidence in the VFEX as a credible and stable platform,” ZSE CEO Justin Bgoni told Business Times.
“The rise in turnover and market participation points to the exchange’s increasing relevance.”
January 2025 marked a historic high for the VFEX, with a record daily turnover of US$40.1m, more than doubling the US$17.5m registered in December 2024.
This landmark achievement not only underscores the VFEX’s growing liquidity but also highlights its rising appeal in a market landscape marked by currency instability and limited investor confidence on the ZSE.
Market capitalisation also saw a meaningful uptick, climbing 5.74% to US$1.29bn from US$1.22bn in the prior quarter.
The gain reflects growing confidence in VFEX-listed companies, most of which have dual listings on the London Stock Exchange, further enhancing their credibility and appeal to global investors.
“The VFEX offers a viable hedge against Zimbabwe’s currency volatility, especially for institutional investors seeking preservation of capital in hard currency,” said Tafadzwa Ndlovu, an investment analyst.
“Its growth trajectory is a sign that the market is responding positively to reforms.”
The VFEX All Share Index—widely used to measure the exchange’s overall performance—rose by 5.99% in Q1 2025 to close at 110.32 points. The upward trend contrasts sharply with the ZSE, which continues to grapple with declining volumes, weakened investor interest, and depreciation in real-value terms.
As Zimbabwe’s main bourse faces deepening structural challenges, the VFEX is fast becoming the symbol of resilience and reform-driven progress.
Its hard currency structure, growing turnover, and strong equity performance point to a market in ascendancy.
In an economic environment fraught with uncertainty, the VFEX offers a compelling narrative of hope—showing that capital markets can thrive, even in adversity.
