Old Mutual return gives VFEX fresh market muscle

STAFF WRITER

ZSE Holdings chairperson Caroline Sandura has described Old Mutual Limited’s return to Zimbabwe’s capital markets through a listing on the Victoria Falls Stock Exchange (VFEX) as a moment that could deepen liquidity and broaden the exchange’s appeal to local and international investors.

Sandura said the listing, which makes Old Mutual the 21st security on the US dollar-denominated bourse, was the culmination of years of engagement between policymakers, regulators, the exchange and the financial services group.

“The listing is a product of constructive engagement and reflects the willingness among all stakeholders to pursue solutions that strengthen Zimbabwe’s financial markets while balancing the interests of investors, issuers and the broader economy,” she said.

The return of one of Zimbabwe’s largest financial services groups gives investors access to a blue-chip counter that had been missing from the local market, while potentially increasing trading volumes and improving the depth of the VFEX.

“As the 21st listed security, Old Mutual significantly broadens the quality and depth of investment opportunities available to local, regional and international investors on the VFEX. Its inclusion is expected to enhance liquidity, improve market visibility and strengthen the VFEX’s position as Zimbabwe’s international financial market,” Sandura said.

She said investors had for years expressed a desire to trade Old Mutual shares locally, making the listing an important development for the country’s investment ecosystem.

“For many investors, the absence of Old Mutual Limited created a significant gap within the investment community. Today, that aspiration becomes reality,” she said.

The listing comes as Zimbabwe seeks to position the VFEX as a credible regional platform for US dollar-denominated investment and cross-border capital flows, with the exchange under pressure to deepen liquidity and expand its product base.

Victoria Falls International Financial Centre (VFIFC) chief legal officer Meluleki Sibanda said Old Mutual’s decision was more than a corporate milestone, arguing that it represented a vote of confidence in Zimbabwe’s capital-market infrastructure.

“This is not merely a corporate achievement. It is another important vote of confidence in Zimbabwe’s capital markets and in the future that we are building together,” she said.

Sibanda said growing international recognition of the VFEX had strengthened its investment proposition.

“With Zimbabwe’s VFEX mentioned as Africa’s best-performing market, backed by strong corporate balance sheets in US dollar terms, Old Mutual, this is the right place that you are coming to,” she said.

She said the listing would send a broader message to regional and international investors that Zimbabwe was strengthening the institutions underpinning its capital markets.

“Old Mutual’s decision today demonstrates confidence in Zimbabwe’s financial architecture and sends a powerful signal to regional and international investors that our markets are maturing, our institutions are strengthening and our ambition is matched by action,” Sibanda said.