The Victoria Falls Stock Exchange (VFEX) has signed a Memorandum of Understanding with the Dubai Gold and Commodities Exchange (DGCX) as the foreign currency-denominated bourse eyes commodities trading.
Under the agreement, the DGCX will extend technical support, knowledge and skills to VFEX, with the ultimate aim of establishing an international commodities exchange in Zimbabwe.
VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework.
The collaboration will also pave the way for possible investments by DGCX into the VFEX Commodities Exchange.
The one-year agreement was signed in Dubai by DGCX chief executive Les Male, and VFEX chief executive Justin Bgoni, during the visit of a high-level Zimbabwean ministerial delegation, which also included the Minister of Finance and Economic Development Mthuli Ncube.
Speaking after the signing ceremony, Bgoni said: “We are looking forward to a fruitful exchange of ideas and technical know-how that should culminate in us being able to replicate the success of the Dubai Gold and Commodities Exchange in our own country and under the proposed Victoria Falls Stock Exchange-driven commodities exchange.”
Male said the partnership with VFEX was part of “our wider strategy to strengthen commodities trading across Africa”.
“We are confident that our deep knowledge and expertise will help bring value to VFEX as they kick start the Offshore Financial Services Centre for the special economic zone in Victoria Falls. The partnership also builds on our expanding international footprint and represents another opportunity for us to build stronger inroads into Africa, a rapidly growing market with enormous potential,” Male said.
DGCX is the region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement.The DGCX Group owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DGCX and DCCC are regulated by the Securities and Commodities Authority.