VFEX turnover skyrockets 232%
SAMANTHA MADE
Turnover on the Victoria Falls Stock Exchange (VFEX) soared by 232% in the first half of 2025, reaching US$73m, as investors seeking hard currency exposure piled into the four-year-old bourse, fresh market data has revealed.
The dramatic rise in activity is challenging early scepticism over the exchange’s long-term viability and policy consistency, with analysts now pointing to VFEX as an increasingly credible capital-raising platform for dollar-denominated investments.
Crucially, the upturn has not been driven by soaring share prices, but by a sharp rise in volumes and trade frequency.
According to FBC Securities, turnover for the six months to June jumped to US$73m, up from just US$22m over the same period in 2024.
Share volumes surged 795%, climbing to 1.28 bn from 143m in the prior year.
“The VFEX continues to position itself as a credible US dollar-denominated platform for export-aligned and institutional-grade listings,” FBC said.
“Going forward, policy consistency, liquidity enhancement, and targeted product innovation will be critical to sustaining investor confidence.”
The Zimbabwe Gold (ZiG) currency has also shown relative stability, which FBC attributes to tighter monetary policy and stronger reserve backing.
“The Zimbabwe Gold (ZiG) currency has shown relative stability, supported by tighter monetary policy and enhanced reserve backing, while inflation is projected to close 2025 in the 25–30% range, barring fiscal slippages or parallel market pressures.”
Inflationary pressures, while still present, are expected to remain within the projected band if fiscal prudence is maintained and informal market distortions are contained.
On the external front, Zimbabwe’s public debt re-engagement efforts—led by the African Development Bank (AfDB) and International Monetary Fund (IMF)—are gaining traction.
“Public debt re-engagement efforts, anchored by the AfDB and IMF, are progressing, and if structural benchmarks are met, Zimbabwe could unlock concessional funding that would further support macroeconomic stability and ease exchange rate pressures, although this remains a medium-long-term goal,” FBC said.
Despite the positive indicators, Zimbabwe’s trade deficit is expected to widen slightly in the second half of 2025 due to growing import demand. However, this is expected to be partially offset by firm export performance in agriculture and mining.
“On the external trade front, Zimbabwe’s trade deficit is set to widen, albeit mildly, in H2 2025 amid rising import demand, although firm agricultural and mineral exports offer partial relief,” the report observed.
Access to foreign currency remains uneven. While large exporters have experienced improved availability through official channels, Small and Medium Enterprises (SMEs) still face challenges.
“Foreign currency availability through the official market has improved for large exporters, but access remains constrained for SMEs,” FBC noted.
Credit conditions are likely to remain tight in the domestic currency as the Reserve Bank maintains its contractionary monetary stance. However, firms generating revenue in US dollars and those linked to infrastructure projects are expected to remain well-capitalised.
“Credit is expected to remain tight in ZiG as the authorities maintain a contractionary stance. However, USD-generating firms and infrastructure-linked businesses are likely to continue benefiting from improved funding and rising business confidence.”
Overall, Zimbabwe’s economy has shown encouraging signs of recovery in the first half of 2025, with GDP growth now forecast at 6.0% for the year—up significantly from the 2.0% recorded in 2024.
