VFEX, miners finalise Zimbabwe’s first hybrid commodities trading model

SAMANTHA MADE

The Victoria Falls Stock Exchange (VFEX), in collaboration with miners, logistics firms, and warehouse operators, is in the final stages of building Zimbabwe’s first hybrid commodities trading model—an ambitious framework that integrates both spot and derivative markets.

This pioneering system will allow  market participants to trade physical commodities for immediate delivery while also accessing derivative instruments such as futures, options, and swaps to hedge against price volatility.

The initiative is set to unlock significant value for Zimbabwe’s key mineral sectors—including gold, lithium, platinum, chrome, and nickel—by offering pricing transparency, risk management tools, and new financing pathways.

For small and mid-tier mining firms in particular, access to a structured commodities exchange could revolutionise cash flow planning, strengthen offtake agreements, and attract both domestic and international financing.

The bold initiative is expected  to align with regional and global trends that seek to formalise, deepen and liberalise commodity trading.

Positioned within the broader Zimbabwe Stock Exchange (ZSE) framework but operating under more liberal foreign currency regulations, VFEX has emerged as the frontier market’s innovation hub—now venturing into the high-stakes world of commodity and derivatives trading.

According to VFEX , the platform would be inclusive and reflects the multifaceted interests of the commodities value chain.

“The Exchange continued its endeavors to begin the trading of commodities on the bourse. VFEX has partnered with strategic players in the market to create a platform that reflects interests of parties involved including miners, logistical companies, warehouse operators and policy makers among others. The Exchange is also beginning engagements with miners to design the best model for a hybrid trading of commodities and their derivatives. The VFEX together with its strategic partners will be engaging in the final endeavors prior to the launch of the commodities trading,” VFEX said.

The involvement of miners at the design stage signals a break from top-down policy prescriptions that often disconnect from industry realities.

Instead, the VFEX is embracing a collaborative approach, recognising that the sustainability of a commodities market rests on the confidence and active participation of resource producers.

Industry experts view this collaborative model as a critical evolution for Zimbabwe, where mining remains the backbone of export earnings.

Formalising a commodities trading system not only boosts transparency and governance but also unlocks new financial instruments for producers and investors alike.

“An exchange that listens to miners at the design stage is more likely to succeed,” Tinotenda Muswere, a Harare-based mining expert told Business Times.

“It creates legitimacy from the outset and ensures the instruments offered match real-world needs.”

Another commodities expert, Thomas Banda said the platform aligns with global best practices and has the potential to formalise Zimbabwe’s vast but largely informal commodity trade.

“A commodities exchange is more than just a trading floor—it’s a trust mechanism,” noted Banda.

“Zimbabwe has the reserves. What’s been missing is a reliable, rules-based system to monetise them efficiently.”

The VFEX’s commodities vision mirrors similar efforts seen across developing markets.

For instance, Ethiopia’s ECX (Ethiopia Commodities Exchange) and Nigeria’s NCX (Nigerian Commodities Exchange) were both built to bridge informal agricultural markets with formal finance, leading to increased farmer incomes and better export coordination.

VFEX is attempting to do something similar—but with a more sophisticated asset class.

By incorporating metals, energy resources, and industrial minerals into a digital, real-time trading ecosystem, Zimbabwe could strengthen its claim as a commodities powerhouse in Southern Africa.

Furthermore, the move dovetails with the African Continental Free Trade Area (AfCFTA) ambitions to harmonise commodity exchanges across the continent, potentially allowing Zimbabwean contracts to be traded regionally in the future.

Beyond the mechanics of trading, VFEX’s initiative involves robust stakeholder alignment on physical infrastructure.

This includes warehousing standards, logistical coordination, and quality certification—all of which are vital for an efficient commodities market.

The exchange’s collaboration with logistics firms and warehouse operators suggests a keen understanding of the supply chain.

A well-run exchange must guarantee not just pricing integrity but also physical delivery and product quality verification. This infrastructure backbone is what lends credibility to any commodities market.

From a policy standpoint, VFEX has also been working closely with regulators and ministries to ensure that the commodities platform supports broader economic goals—including beneficiation, value addition, and foreign currency generation.

Since its inception, VFEX has marketed itself as a gateway for foreign capital into Zimbabwe’s hard currency-denominated economy.

With the commodities exchange, this pitch is only set to grow stronger.

Commodity-backed investment instruments could appeal to foreign fund managers seeking exposure to Zimbabwe’s mineral wealth, without necessarily navigating the operational complexities of direct mining investments.

Through structured notes, futures contracts, or ETFs (Exchange Traded Funds), global investors could gain access to Zimbabwe’s resources with enhanced liquidity and regulatory transparency.

Already, VFEX-listed companies like Caledonia Mining Corporation—listed on both the VFEX and the London Stock Exchange—show that Zimbabwe can host dual-listed, globally compliant entities. The commodities platform may further widen this appeal.

While the outlook is promising, experts caution that a successful commodities exchange will require sustained commitment to rule of law, market integrity, and macroeconomic stability. Zimbabwe’s past currency volatility, policy flip-flops, and resource nationalism have often deterred investment and undermined long-term confidence.

As such, VFEX and its partners must ensure that the new commodities platform is insulated from political interference, with rules-based operations and independent governance structures.

Transparency, contract enforceability, and dispute resolution mechanisms must also be embedded to avoid a repeat of historical grievances between miners and the State.

The commodities exchange initiative positions VFEX not just as a stock trading platform, but as a transformative engine for national development.

It opens up new pathways for formalisation, value chain optimisation, and international capital inflows.

If executed well, it could mark a turning point in how Zimbabwe monetises its vast natural resources—moving from opaque bilateral deals to open, competitive market dynamics.

It could also set a new standard for public-private collaboration in economic reform.

For now, all eyes are on the VFEX and its partners as they enter the final stages before launch.

What emerges could be more than just a market—it could be a milestone in Zimbabwe’s economic renewal.