Zimbabwe's New Dollar Exchange Overwhelms Established Stock Market

Victoria Falls Stock Exchange Surpasses Zimbabwe Stock Exchange in Market Value

Zimbabwe's dollar-denominated stock exchange, the Victoria Falls Stock Exchange (VFEX), has surpassed the country's 132-year-old main bourse, the Zimbabwe Stock Exchange (ZSE), in market value. This milestone was achieved on March 31, when tycoon Strive Masiyiwa transferred telecommunications infrastructure firm Econet InfraCo Ltd. to the platform at a $1 billion valuation. The listing accounts for almost a quarter of VFEX's total capitalization.

As of Wednesday, VFEX's 19 listings, many of which migrated from the ZSE, were valued at approximately $3.79 billion, surpassing the $3.4 billion market capitalization of 43 counters that trade in the local ZiG currency on the Harare-based stock exchange. The transition is not 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, attributes the shift to VFEX becoming the anchor for liquidity in hard currency, attracting foreign and institutional investors who value dollar stability and easier dividend repatriation. This has changed the investor base toward international capital, while the ZSE is increasingly dominated by retail and local-currency exposure.

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The shift is unfolding as global shocks, including the US-Israeli war with Iran and persistent currency instability at home, drive demand for dollar-based assets, reinforcing the appeal of offshore-style platforms like VFEX. Musariri notes that 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, leaving it more volatile and increasingly tied to a shrinking pool of heavyweight stocks.

VFEX expects to attract at least four new listings this year, according to Chief Executive Officer Justin Bgoni. However, comparing the two stock exchanges is complex, with the ZSE having more listed entities but VFEX boasting a larger market capitalization. Bgoni believes that both exchanges have upside potential and are hoping for a strong performance from both platforms.