The Zimbabwe Stock Exchange in Harare. Its competitor, the Victoria Falls Stock Exchange, has overtaken the ZSE by market value after tycoon Strive Masiyiwa transfered telecommunications infrastructure firm Econet to the platform at a $1 billion (R16.3 billion) valuation on March 31.

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The Victoria Falls Stock Exchange, established during a currency crisis in 2020, has overtaken the Zimbabwe Stock Exchange by market value after tycoon Strive Masiyiwa transfered telecommunications infrastructure firm Econet to the platform at a $1 billion (R16.3 billion) valuation on March 31. The listing accounts for almost a quarter of VFEX’s total capitalisation.

VFEX’s 19 listings — many of which, like Econet InfraCo, migrated from the ZSE — were valued at about $3.79 billion as of Wednesday, surpassing the $3.4 billion market capitalisation of 43 counters that trade in the local ZiG currency on the Harare-based stock exchange.

The transition isn’t a reflection of Zimbabwe’s economy suddenly expanding, but rather a structural reordering of its equity markets, Mary Musariri, an equities analyst at MMC Capital, said in response to emailed questions.

“VFEX has become the anchor for liquidity in hard currency, attracting foreign and institutional investors who value dollar stability and easier dividend repatriation,” Musariri said. That’s changed the investor base toward international capital, while the ZSE is increasingly dominated by retail and local-currency exposure, she said.

The shift is unfolding as global shocks — from the US-Israeli war with Iran to persistent currency instability at home — drive demand for dollar-based assets, reinforcing the appeal of offshore-style platforms like VFEX.

“The broader implication is that VFEX is becoming the benchmark exchange for Zimbabwe’s largest corporates, while the ZSE risks being relegated to a secondary role,” Musariri said. This leaves it more volatile and increasingly tied to a shrinking pool of heavyweight stocks, she said.

The dollar-denominated exchange expects to attract at least four new listings this year, Chief Executive Officer Justin Bgoni said. “We are comfortable” with the pipeline and the new products coming to market, he said.

Still, Bgoni, who is also the CEO of the ZSE, said comparing the two stock exchanges is complex.

The “market cap for VFEX is bigger, but the ZSE has more listed entities,” he said. “We feel ZSE is undervalued and therefore has a strong upside. VFEX is growing so also has upside. We are hoping that both happen.”

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