Story by Tichaona Kurewa
FIRST Capital Bank(FCB) has been listed on the Victoria Falls Stock Exchange, becoming the first commercial bank to join the United States Dollar denominated bourse.
The listing of FCB is a remarkable achievement for VFEX, which now boasts of 13 listings in just three years.
Speaking during the listing ceremony in Victoria Falls this Friday, representatives from FCB and VFEX were optimistic about a win-win partnership.
“Through the existing partnerships, we have secured a EUR12.5 million facility with the European Investment Bank, for SME Midcap companies, and a further US$20 million with Afreximbank.
“VFEX highlighted that together with FCB are exploring ways to promote the VFEX and the capital markets and a Memorandum of Understanding has since been signed between the two,” said First Capital Bank Chairperson, Mr Patrick Devenish.
“Issues contained in the MOU seek to address the following; FCB providing settlement banking facilities on VFEX with a guarantee fund, partnering the exchange in the establishment of a clearing house, FCB becoming a Custodial bank, and assisting in the establishment of a foreign exchange trading platform known as contracts for differences (CDF) trading,” said VFEX Chairperson, Mrs Caroline Sandura.
The Government says the banking sector is a key enabler of the country’s economic growth.
“The banking sector is a key enabler for all our trade and is a major anchor in the attainment of our annual GDP goals. Through the provision of funding solutions, banks are catalysts for output growth in the productive sectors of our economy which include industry, agriculture, mining, infrastructure, digital and telecoms and other essential services,” said the Minister of Finance and Economic Development, Professor Mthuli Ncube.
The growth of the VFEX is a confirmation of the attractiveness of the country’s investment climate in the wake of the government’s engagement and re-engagement drive.