By Tichaona Kurewa
INCENTIVES put in place by the government to attract investment on the Victoria Falls Stock Exchange(VFEX) are paying dividends following the listing of Simbisa Brands on the bourse this Friday.
To attract listings on the VFEX, the government put in place incentives including a 100 percent retention on incremental exports, payment of internal and external payments without limitations, five percent withholding tax compared to ten percent for those listed on the Zimbabwe Stock Exchange and exemption of capital gains tax.
Addressing delegates at the listing ceremony for Simbisa Holdings this Friday, the Finance and Economic Development Minister, Professor Mthuli Ncube highlighted that the establishment of the VFEX is one of the core initiatives towards the establishment of an Offshore Financial Services Centre in the city of Victoria Falls.
“Just a week ago, we were gathered here celebrating another listing on VFEX, and with Simbisa Brands now on board, the growth trajectory on VFEX is indeed pleasing. I applaud the VFEX team, led by Justin Bgoni who has worked tirelessly to ensure the success of this exchange. An exchange that is barely two years old, to hold six listings in such a short space of time is indeed commendable,” he said.
Simbisa Brands Limited and VFEX highlighted the importance of the listing.
“We believe that Simbisa Brands is going to benefit from listing on VFEX through raising more capital in foreign currency to finance future expansions, enhance the local and international profile amongst the public and investors and also take advantage of the incentives applicable on VFEX among many other benefits offered by the VFEX,” said Caroline Sandura, Victoria Falls Stock Exchange, chairperson.
“The signalling listing alone has the double effect of improving Simbisa’s investment appeal in the regional markets in which it already has a footprint and increasing the allure of the VFEX in the eyes of local companies, injection of FDI through IPOs and additional listing of other financial instruments such as bonds.
“We expect to witness these positive knock-on effects of increased regional participation and listing of local companies on VFEX over the coming months,” said Addington Chinake, Simbisa Brands Limited chairperson.
Launched in December 2021 to lure foreign direct investment, the VFEX has now listed six firms, with the seventh counter from the mining sector expected in two weeks.