VFEX rockets to US$3,85bn as dollar demand rewires market
STAFF WRITER
Surging demand for US dollar-denominated assets has driven the Victoria Falls Stock Exchange (VFEX) to US$3,85bn in market capitalisation on the back of sharp price gains, high-impact listings and a decisive investor migration from the Zimbabwe Stock Exchange (ZSE).
According to stockbrokers IH Securities’ March 2026 Monthly Snapshot, the VFEX recorded an 11,9 percent increase in market capitalisation during the month, while the All-Share Index surged 14,5 percent to close at 249.86 points.
In contrast, the ZSE remained largely subdued over the same period, underscoring a widening divergence between the two markets.
“This divergence reflects a structural shift in investor preference towards the VFEX, which offers hard currency trading, relatively stable valuations and exposure to export-driven earnings,” IH Securities said.
The momentum on the VFEX is increasingly being defined by a handful of heavyweight counters, with Padenga Holdings emerging as a central driver of the exchange’s recent gains.
Padenga surged 44,07 percent during the month, climbing to US112,56 cents from US78,13 cents, making it the top-performing stock on the bourse. The rally pushed the company’s market capitalisation beyond the US$1 billion mark — a significant milestone for both the firm and the broader market.
Analysts say Padenga’s performance reflects growing investor confidence in its strategic transformation into a gold-focused business, positioning it to benefit from firm global commodity prices and strong export earnings.
Further strengthening the VFEX’s growth trajectory is the recent listing of Econet InfraCo, a US$1 billion infrastructure and digital assets vehicle that has materially expanded the exchange’s market depth.
IH Securities said the listing is a pivotal development, introducing new sector exposure aligned with global investment trends that favour infrastructure, technology and data-driven businesses.
“Its inclusion not only deepens the market but also enhances the VFEX’s appeal to a broader investor base seeking diversified USD-denominated opportunities,” the brokerage firm said.
Trading activity on the VFEX also strengthened during the period, with total value traded rising 41 percent to approximately US$15,17m a sign of growing participation in monetary terms.
However, volumes declined by 27,07 percent to 23,99m shares, indicating that the rally is being driven more by price appreciation than broad-based accumulation.
Market activity remained selective, with investors concentrating on fundamentally strong counters offering earnings visibility and currency protection.
Innscor Africa led in value traded at US$7,52m, reflecting sustained institutional interest. The group recently deepened its footprint in the agro-industrial sector after acquiring a 27 percent stake in Tanganda Tea Company through its subsidiary, Rutanhi Beverages, following an US$8m rights offer.
The conglomerate’s latest financials show it committed more than US$62m towards capital expenditure as at December 31, 2025, underscoring an aggressive expansion drive across its business units.
Analysts say such capital allocation signals long-term growth intent, reinforcing investor appetite for stocks with clear expansion strategies and resilient earnings.
The selective nature of trades on the VFEX aligns with a broader rerating trend, where investors are increasingly willing to pay a premium for quality counters anchored on hard currency revenues.
